Investors meet Romanian authorities as political volatility puts fiscal consolidation at risk

According to a government statement, the discussions took place against the backdrop of Romania’s current political and economic situation and focused mainly on the evolution of public finances, the outlook for the budget deficit, the state’s financing costs, the absorption of European funds, and the need to continue fiscal consolidation and the reforms already under way to maintain fiscal stability and investor confidence.

Bolojan thanked representatives of the business community for their cooperation over the past year and for the confidence they had placed in Romania through their investments, the statement said.

In turn, company representatives welcomed the measures adopted by the government over the past year to reduce the budget deficit and control public spending, emphasising that the results achieved had helped maintain investor confidence in the Romanian economy.

“However, investors emphasised that the results achieved so far must be consolidated and that the predictability of economic and fiscal policies is essential for medium- and long-term investment decisions. In this context, business representatives expressed concern that changes in the government configuration could affect the pace of reforms, control of public spending and the trajectory of budget deficit reduction,” the statement said.

Against this backdrop, the interim prime minister stressed that Romania needs, as soon as possible, a fully empowered government and a responsible prime minister who can continue fiscal consolidation in the coming years and implement the reforms needed to reduce structural imbalances.

At the same time, Bolojan said that deficit reduction must continue through tighter control of public spending, a more efficient state apparatus and the prioritisation of investment.

Another important topic of discussion was the absorption of European funds under the PNRR, particularly its grant component.

“We will make every effort to maximise the absorption rate of PNRR funds by the end of the year. We must capitalise on this resource for investment and the development of the economy,” Bolojan said.