Romania will meet its commitments, after many years of not doing so, and will end 2025 with a budget deficit below the agreed target of 8.4% of the Gross Domestic Product. The announcement was made by PM Ilie Bolojan after the last government meeting in 2025, when he took stock of the six months of work as head of government.\u00a0He mentioned that he took office \u201cat a difficult time\u201d for Romania and was forced to take a number of unpopular measures, such as increasing VAT, freezing incomes and scrapping some bonuses.<\/p>\n
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Ilie Bolojan: \u201cDuring this half a year, the measures we have taken have put public finances in order, so that at the end of this year we will be in line with the commitments we have made, after many years, and we will have met the deficit target. Specifically, we will have a budget deficit below the 8.4% we have aimed for. If we collect the taxes and duties that have been set this year and we are prudent in spending public money, we will not have to increase further taxes or duties. Also for the following year, we have a political agreement in the ruling coalition, to carry on these reforms. We need a reform of both local and central administration”.<\/p>\n
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On the other hand, the prime minister added that six months ago “we were on the verge of having our European funds suspended and losing the trust of financial markets”. According to him, thanks to the measures taken so far Romania has managed to maintain its credibility with lenders and markets. \u201cThis means that we borrowed more cheaply and already this autumn we are paying lower interest rates than we were paying at the beginning of the year,\u201d the PM went on to say. As for the cut in certain public expenses, Ilie Bolojan said that these \u201cwere not only a burden on the budget, but also historical injustices that Romanian society has been complaining about for many years.\u201d<\/p>\n
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As regards the magistrates’ pensions, where, the PM argued, both the pension amounts and the retirement age are perceived by Romanians as unfair compared to many social categories, a decision is expected from the Constitutional Court in the coming period, which will clarify these aspects. In the field of defence, Mr. Bolojan said, Romania has met all its international commitments related to the budget and, very importantly, has accessed the SAFE programme, which allows for both equipment procurement and for keeping budget deficits in check, because this loan is spread over many years.<\/p>\n
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During these six months, the PM added, the current government has also addressed the funding of public healthcare. \u201cToday we spend the money that goes to healthcare more sensibly, which benefits many patients,\u201d he explained. Finally, Ilie Bolojan warned that 2026 will also be a difficult year, but he estimated that things will be better than in 2025, as public finances have been put in order, although spending must still be kept under control. (AMP)<\/p>\n","protected":false},"excerpt":{"rendered":"
Romania will meet its commitments, after many years of not doing so, and will end 2025 with a budget deficit below the agreed target of 8.4% of the Gross Domestic Product. The announcement was made by PM Ilie Bolojan after the last government meeting in 2025, when he took stock of the six months of […]<\/p>\n","protected":false},"author":107,"featured_media":967114,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[183078,158915],"coauthors":[113282],"class_list":["post-967259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-assessment-of-government-activity","tag-ilie-bolojan"],"acf":[],"yoast_head":"\n