European Commission cautions Romania

european commission cautions romania Romania's overspending is becoming a problem, the European Commission has warned

The European Commission has again referred to the economic situation in Romania, at present the only EU Member State targeted by the excessive deficit procedure (EDP) based on evolutions prior to the pandemic. The warning comes as the Commission has published a set of general fiscal, financial and economic recommendations for each Member State. Brussels does not want to take other similar actions in the upcoming period, Commission vice-president Valdis Dombrovskis says, arguing that a re-assessment of criteria to meet debt and deficit targets will be made this autumn and next year in spring. In particular, the Commission wants Member States to comply with recommendations in the European semester, vice-president Dombrovskis also pointed out, adding that investments should be doubled by a very firm control of current spending. 

As regards Romania, the European official said our country's budget deficit for 2022 complies with the EU Council recommendations, which is why the EDP is kept in standby. But since there are substantially larger risks for the current year, more efforts are needed to attain the set targets, Valdis Dombrovskis went on to say. According to European officials, Romania is overspending at present, and needs to bring the budget deficit below 3% by 2024. The Commission's recommendation is that the government should cut support measures in the energy sector, which are currently in place until the end of 2023, and use the resulting savings to curtail the deficit. Another recommendation is to ensure efficient governance and consolidate administrative capabilities so as to allow for a continuous, swift and constant implementation of the recovery and resilience plan. Romania was given six months to solve all the issues signaled by the Commission with respect to certain milestones or targets in the National Recovery and Resilience Plan, which it has not properly fulfilled. State Secretary with the Ministry of Investments and European Projects, Carmen Moraru explained that only the funds earmarked to these projects can be suspended, not the entire €2.8 bln representing the second installment disbursed to Romania. Referring to the current phase of its implementation, Carmen Moraru said the plan stipulates funding contracts worth €26 bln, addressing the ministries of development, transports, education and the environment, which launched major projects. (VP)
Publicat: 2023-05-25 14:00:00
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