By Reuters An "optimistic, realistic" budget deficit target for Romania in 2025 is 7.5% of economic output, President-elect Nicusor Dan said on Thursday, adding that preliminary talks on the 2025 and 2026 budgets do not include tax increases. Romania ran a deficit of 9.3% of output in 2024. Failure to quickly enforce credible mesures to lower the shortfall means the European Union and NATO member state risks having its access to EU funds blocked and a potential downgrade of its sovereign rating from the last rung of investment grade. After defeatinga hard-right eurosceptic contender in a presidential election this month, centrist Dan faces the task of nominating a prime minister who can put together a team that can deal with public finances. Romania's 2025 budget targets a deficit of 7% of output - based on an economic growth assumption of 2.5% - which analysts and the European Commission have said is virtually unattainable without additional measures being taken. "The optimistic, realistic target for 2025 for the deficit is 7.5% of GDP. We need to transfer approximately 30 billion lei ($6.70 billion) within the budget," Dan told reporters after the top court validated the election result. He will be sworn in on Monday. "In my view, talks on the 2025 and 2026 budgets start from the premise of not hiking taxes," said Dan, who opposed tax increases during his election campaign. Romania's growth has steadily slowed since a post-pandemic bounce in 2021 and the European Commission, the EU's executive body, forecasts a budget deficit of 8.6% this year and 8.4% in 2026. Romania is currently hanging on to the lowest investment grade rating from S&P, Fitch and Moody's. All three have it on a "negative" outlook. A new government will have to involve at least three pro-EU parties to have a majority, while the far-right, which controls a third of parliament, could build on its recent gains to stoke sentiment against budget cuts.
The European Commission has approved a payment of EUR 1.27 billion to Romania as part of the National Recovery and Resilience Plan (PNRR) funding worth some EUR 28 billion in total. The rest of the scheduled payment, totaling EUR 870 million, was suspended. Romania’s European funds minister, Marcel Boloș, announced that three objectives included in […]
The tech startups YellowGrid, WiseWatts and Procesio won CleanTech Corporate Hackathon 2025, the first event dedicated to innovators, startups and scaleups creating AI-based technologies and solutions for sustainable energy in South East Europe. YellowGrid, the team that won first place and the EUR 5,000 prize, is composed of Cătălin Stăncel, Sergiu Mureșan, Andrei Antohie and […]
Romanians' trust in the EU is well above the European average, but they occasionally show different priorities compared to those of most Europeans, according to the most recent Eurobarometer survey. The measurement, conducted in the winter and spring of 2025, shows an overall increase in European citizens’ trust in the EU, especially in the areas […]
Romania has dropped four positions in the global Startup Ecosystem 2025 report by StartupBlink. It is now ranked 48th worldwide, and has lost ground in Eastern Europe, where it dropped from 8th to 9th place, after Ukraine advanced one position and Greece two positions, surpassing Romania globally. However, Romania is now 16th in the global AI top […]
The Nufărul geothermal station in Oradea, developed through a European project worth EUR 25 million, was officially inaugurated on Thursday, May 29. The station is the first of its kind in Romania, and builders had to drill approximately 2,800 meters for water. “All extracted water comes to the geothermal station on Iancu de Hunedoara Street, […]
CTP, a leading developer, owner, and operator of industrial and logistics properties, has extended its collaboration with HelpShip, a major e-fulfillment and logistics provider within the euShipments.com group, increasing HelpShip’s leased space to 20,000 sqm at CTPark Oradea Cargo Terminal. The expanded facility will serve as the company’s main fulfilment center. With HelpShip’s growth from […]
