Romania praised and criticized by Brussels in the same report: real progress, excessive imbalances continue

The European Commission has recognized Romania's efforts in correcting its excessive deficit, noting that the country has made real progress and does not require additional measures at this stage. However, in its Spring 2026 European Semester package, the Commission also highlighted that Romania continues to face excessive macroeconomic imbalances.

While acknowledging Romania's satisfactory fulfillment of its commitments regarding reforms and investments for its extended budgetary adjustment period, the Commission maintains a cautious stance on the country's macroeconomic stability. Unlike countries like Greece, the Netherlands, and Sweden, which have seen their vulnerabilities diminish, Romania's remain significant, despite progress in reform implementation. Other nations like Italy, Hungary, and Slovakia also present imbalances, but not to the same severity as Romania.

The Commission recommends that Romania persist with fiscal consolidation measures and maintain strict discipline over net expenditure, adhering to the limits set by the EU Council. Furthermore, the executive body urges an acceleration of structural reforms, including improvements in public administration and the pension system. A key focus is also placed on enhancing tax collection efficiency, specifically targeting the reduction of substantial gaps in Value Added Tax (VAT) and profit tax collection, which are identified as among the highest within the European Union. The Commission warns that the economy is projected to stagnate in 2026 due to austerity measures and high inflation.