The European Commission said Romania has taken effective measures to address its excessive budget deficit, concluding that no further steps are currently required under the European Union’s Excessive Deficit Procedure (EDP).
The assessment was included in the EC’s 2026 European Semester Spring Package, adopted on June 3. The Commission reached similar conclusions for Austria, Belgium, Finland, France, Hungary, Italy, Poland, and Slovakia.
“Romania has taken effective action” to correct its excessive deficit, the Commission stated, adding that “no further action is therefore necessary under the excessive deficit procedure at this stage”.
The assessment marks an important signal for Bucharest, which remains under heightened scrutiny from Brussels due to its large fiscal imbalances and ambitious consolidation commitments.
The Commission also reviewed the implementation of reform and investment commitments by member states that received an extended seven-year fiscal adjustment period rather than the standard four years. Romania was among the countries subject to this additional assessment.
According to the Commission, Romania has made satisfactory progress on several key reforms underpinning the extension.
Among the measures highlighted was the ongoing reform of the public-sector remuneration system. Brussels noted that work has started on a new Wage Law, which Romanian authorities expect to adopt during the summer.
The Commission also cited progress on property tax reform, including the development of an IT system for automated property valuation, the establishment of structures for monitoring public expenditure, and reforms related to corporate financing.
“The Commission considers that, overall, Romania has complied with its commitments in a satisfactory manner,” the report states.
Despite the positive assessment, Brussels called for additional efforts to ensure long-term fiscal sustainability.
The Commission recommended that Romania continue to respect the expenditure growth limits agreed with the Council on July 8, 2025, fully implement pension reform, and adopt a public-sector wage reform that contributes to fiscal consolidation. It also urged authorities to improve tax collection, particularly by reducing the country’s large VAT and corporate tax gaps, estimated at 30% and 44% respectively, among the highest levels in the EU.
Further recommendations include strengthening defence spending and preparedness, ensuring that measures supporting consumers against higher energy prices remain temporary, improving the quality of public administration, and enforcing corporate governance standards in state-owned enterprises.
The Commission also called for greater investment in environmental infrastructure and sustainable transport projects as part of Romania’s broader economic modernisation agenda.
iulian@romania-insider.com
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