The European Commission has issued a firm call for Romania to persist with its stringent deficit-reduction strategy, reiterating a warning that any deviation from this path could lead to the suspension of crucial European Union funds, according to Euractiv.
During a visit to Bucharest, EU Economy Chief Valdis Dombrovskis emphasised the critical need for continued political commitment to tackle the country’s fiscal shortfall, which stood at 9.3% of annual GDP in 2024, the highest within the bloc.
“As we look forward, we need to keep a solid performance on public finances and economic growth,” Dombrovskis said in the capital, Bucharest, after a two-day visit, where he met with Prime Minister Ilie Bolojan and other senior Romanian officials. “Continued effort and political commitment will be vital for this,” he added.
The Commission’s urging comes amidst a challenging political climate in the strategically located nation, which borders EU candidate countries Moldova and Ukraine. Romania has been marred by political instability and public protests against sweeping austerity measures introduced by the government.
These measures are part of a plan to slash the deficit to 6% by 2026, following an agreement last month between Bucharest and the Commission that set a 2025 target of 8.4%, a figure significantly higher than the government’s initial 7% proposal.
Standing alongside the Prime Minister, Dombrovskis offered a degree of validation for the current approach, stating that “the scale and nature of measures taken” by Romania “were fully in line and appropriate to bring Romania back on [a] sustainable track.”
The EU executive will provide a formal assessment of Romania’s budget measures in November, with a “positive assessment” being pivotal to avoiding the suspension of EU funding—a threat first issued by the Commission in June.
As a major beneficiary of EU regional financing, with €31.5 billion allocated from the current multiannual budget, this potential suspension carries significant weight. A Commission spokesperson clarified to Euractiv that the assessment will primarily determine whether Romania’s net expenditure growth target does not exceed 2.8% this year.
