{"id":5845,"date":"2025-07-10T13:00:51","date_gmt":"2025-07-10T13:00:51","guid":{"rendered":"https:\/\/ofero.news\/?p=5845"},"modified":"2025-07-10T13:00:51","modified_gmt":"2025-07-10T13:00:51","slug":"moodys-praises-romania-for-new-fiscal-package-meant-to-tackle-budget-deficit","status":"publish","type":"post","link":"https:\/\/ofero.news\/?p=5845","title":{"rendered":"Moody\u2019s praises Romania for new fiscal package meant to tackle budget deficit"},"content":{"rendered":"

The rating agency Moody\u2019s, which, among others, analyzes the viability of states as debtors, welcomed the fiscal measures adopted by the Romanian government toward budgetary balance, according to a\u00a0press release<\/a>\u00a0from the Ministry of Finance.<\/p>\n

Moody\u2019s estimates that, if the package<\/a> is fully implemented, the budget deficit could be 7.8% of GDP by the end of the year, compared to 8.3%, as previously forecast. Next year, the deficit is expected to drop to 6.1%.<\/p>\n

Romania\u2019s budget deficit in ESA terms, the EU standard, was 9.3% last year, the highest in the EU bloc.<\/p>\n

Despite the overall optimism, the agency also points out that there is a risk that some of the planned measures may not generate the estimated contribution to deficit reduction, either due to deficiencies in execution or due to unforeseen economic conditions.<\/p>\n

Although government debt will continue to rise to 62.6% of GDP by the end of 2026 (from 54.8% in 2024), Moody\u2019s now estimates that the debt will plateau at approximately 66.5% of GDP starting in 2029. This projection is below the maximum level of nearly 71% of GDP forecast in March, when Romania\u2019s outlook was changed to negative.<\/p>\n

The rating agency also appreciates the government’s intention to adopt a second package of measures by the end of July, which could include new fiscal measures for generating revenue and reducing expenditures.<\/p>\n

\u201cThese, along with reforms in the governance of state-owned companies and regulatory agencies, will further contribute to deficit reduction,\u201d the report emphasizes.<\/p>\n

Moody\u2019s says that strictly adhering to the established fiscal targets is essential for the success of the consolidation program. A firm commitment to budgetary objectives is considered crucial for maintaining Romania\u2019s fiscal credibility and ensuring a sustainable reduction in the deficit.<\/p>\n

The agency warns that any deviation from the assumed plan could undermine stabilization efforts and could exert additional downward pressure on the country\u2019s sovereign rating.<\/p>\n

Finally, the rating agency highlights that full and effective implementation of the fiscal measures package will be a significant challenge. It also considers the full implementation of the reforms included in the National Recovery and Resilience Plan (or PNRR) as crucial for further fiscal consolidation and, implicitly, for accessing European funds.<\/p>\n

radu@romania-insider.com<\/a><\/em><\/p>\n

(Photo source:\u00a0tiraspolsky | Dreamstime.com<\/a>)<\/em><\/p>","protected":false},"excerpt":{"rendered":"

The rating agency Moody\u2019s, which, among others, analyzes the viability of states as debtors, welcomed the fiscal measures adopted by the Romanian government toward budgetary balance, according to a\u00a0press release\u00a0from the Ministry of Finance. Moody\u2019s estimates that, if the package is fully implemented, the budget deficit could be 7.8% of GDP by the end of […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5845","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/5845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5845"}],"version-history":[{"count":0,"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/5845\/revisions"}],"wp:attachment":[{"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}