The Economic and Financial Affairs Council (ECOFIN) on June 20 adopted a new decision establishing that Romania has not taken effective action in response to Council recommendations in the context of the Excessive Deficit Procedure. No further action was taken yet, however.<\/p>\n
Specifically, Romania failed to observe ECOFIN\u2019s January 21 recommendation, which stipulated that the country should take steps, including reviewing its tax framework, with a view to boosting budget revenues. It also failed to deliver, by April 30, the annual update on the progress along the seven-year fiscal consolidation plan.<\/p>\n
\u201cNet expenditure has grown in 2024 much faster than recommended, leading to a persistent high government deficit and putting at risk a timely correction of Romania\u2019s excessive deficit by 2030,\u201d the decision endorsed by ECOFIN on June 20 establishes.\u00a0<\/p>\n
The decision opens the way for possible further steps if Romania does not take swift action to reduce its budgetary imbalances, according to the official press release issued by ECOFIN.<\/p>\n