The discussions on the 2026 public budget will begin towards the end of November, after the November 13 session of the Economic and Financial Affairs Council (EcoFin) that will include “a first review under the Excessive Deficit Procedure (EDP)” for Romania and the endorsement of the revised PNRR, finance minister Alexandru Nazare announced, according to Financialintelligence.ro.
Romania submitted its first report under the EDP, which was due on April 15, as of October 15. In June, EcoFin found that Romania failed to provide the necessary report, and it drafted a revised consolidation trajectory for the seven-year consolidation plan – in response to the higher-than-expected 2024 deficit and further slippage in the first half of 2025.
“We have not actually started the consultation process on the 2026 budget. I suspect that somewhere at the end of November is the time when we will do this, after discussing with all the line ministries,” minister Nazare said
The deficit target for next year is 6%, he confirmed.
The EcoFin will review on November 13 the first package of budgetary measures legislated in July, the second package partly legislated so far and lacking critical elements (local administration reform, the law on magistrates’ pensions), and “all the measures that we took,” minister Nazare confirmed.
He expressed optimism, however, about the conclusions of the EcoFin session on November 13, mentioning the rating agencies that abstained from downgrading the country’s sovereign debt.
“Basically, this Council will make an analysis of Romania’s financial situation, and I have great confidence that following this analysis we will have a good, positive result and that this will be reflected in a positive result related to the suspension of European funds, which was another critical risk we have faced during this summer,” Nazare emphasised.
Minister Nazare concluded that he expected that after the Council on November 13, the option of Romania having the EU funds suspended in 2026, “which is no longer relevant,” will eventually be dropped.
Speaking about the 2025 budget execution, minister Nazare highlighted the recent budget revision that he said was coordinated with the rating agencies, besides the European Commission. There still exist risks for fiscal slippage this year, above the 8.4% of GDP new deficit target, he admitted – adding that the executive is currently taking measures to mitigate these risks.
“This 8.4% target is not small at all, the deficit still remains high, but the adjustment that we are managing and the fact that the [rating] agencies have somehow confirmed it as plausible, puts us in a completely different reality in which we somehow coordinate with the agencies’ assessments and this is an important signal of trust that we are giving,” the minister commented.
iulian@romania-insider.com
(Photo source: Facebook/Alexandru Nazare)
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