Stability and Growth Pact

According to preliminary data of the National Statistical Institute the General Government Institutional Sector reported in 2019 a surplus of 2 470 million BGN or 2.1% of GDP. The surplus in Central Government sub-sector amounted 2 349 million BGN or 2.0% of GDP.

The fiscal budgetary strategy for 2020-2022, adopted by the Government on 10 December 2019 and sent to Parliament, stipulates a deficit target of 3.8 percent of the GDP in 2019, a figure which, according to the European Commission, provides prima facie evidence of the existence of an excessive deficit in Romania, according to a report adopted by the European Commission on Friday.

Romania will fall under the excessive deficit procedure, something that cannot be avoided and the earliest it can happen is in March, Minister-designate of Public Finance Florin Citu told Monday evening private TV broadcaster Realitatea Plus. "The talks are ongoing with the European Commission. (...) And, yes, Romania will enter the excessive deficit procedure.

Fitch Ratings has affirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, according to a Friday release of the credit ratings and research agency. Romania's Country Ceiling was affirmed at 'BBB+', Short-Term Foreign-Currency IDR affirmed at 'F3' and Short-Term Local-Currency IDR affirmed at 'F3', according to the release.

As European Union growth slows, European commissioners signaled in written answers to EU lawmakers published on Friday their preferred measures to revive the economy, with the commissioner-designate for taxation, Paolo Gentiloni, pushing for fiscal leeway and Commission Vice President Valdis Dombrovskis calling for a "responsible fiscal policy."

According to preliminary data of the National Statistical Institute, Bulgaria's debt for 2018 amounts to BGN 24.430 billion, or 22.6% of GDP.

The Greek 2019 budget is compatible with the EU's Stability and Growth Pact, Commission Vice President Valdis Dombrovskis said on Monday, arriving at the Eurogroup meeting in Brussels.

Eurozone finance ministers will discuss, among other ssues, the draft budgets of member-states.

He also said Greece will achieve its target for a primary surplus of 3.5 percent next year.

The European Commission has established that no effective action was taken by Romania in response to the council recommendation of June and proposes that the council adopts a revised recommendation to Romania to correct its significant deviation from the adjustment path towards the medium-term budgetary objective.

The new government first plans to review the 2019 budget and amend it in line with the commitments enshrined in the coalition agreement.

Sustainable public finances are in line with the growth and stability pact and the respect of the fiscal rule is enshrined in the Constitution, Sašo Polanec of the Ljubljana Economics Faculty commented on this for the STA.

On 22 June 2018, the Council adopted a decision establishing that Romania has once again failed to take effective action to correct a significant budgetary deviation.

It issued a new recommendation, the third to Romania since June 2017 under the EU's 'significant deviation procedure'.