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Romanian Finance Minister: 'Romania Achieves Solid and Credible Correction. Deficit Reduced by More Than Half'
๐Ÿ‡ท๐Ÿ‡ด Romania /Elections & Politics

Romanian Finance Minister: 'Romania Achieves Solid and Credible Correction. Deficit Reduced by More Than Half'

From Adevฤƒrul · (9m ago) Romanian Positive tone

Translated from Romanian, summarized and contextualized by DistantNews.

TLDR

  • Romania has significantly reduced its budget deficit in the first quarter of 2026, bringing it down to 1.03% of GDP from 2.28% in the same period last year.
  • Finance Minister Alexandru Nazare attributed the improvement to increased budget revenues and controlled expenditures, particularly in personnel costs, despite international economic pressures.
  • Public investments, largely funded by European funds, remained high, contributing to development without additional pressure on the deficit or domestic borrowing.

In a significant display of fiscal responsibility, Romania has achieved a remarkable reduction in its budget deficit during the first quarter of 2026. Finance Minister Alexandru Nazare announced that the deficit has been more than halved, falling to 1.03% of GDP from 2.28% in the first quarter of 2025. This achievement is particularly noteworthy given the challenging international economic climate, characterized by rising interest rates and a slowdown in the European economy.

Romรขnia reuศ™eศ™te o corecศ›ie solidฤƒ ศ™i credibilฤƒ. Cea mai importantฤƒ evoluศ›ie: am reuศ™it reducerea deficitului la 1,03% din PIB, de la 2,28% รฎn primul trimestru din 2025 - practic, mai mult decรขt รฎnjumฤƒtฤƒศ›it.

โ€” Alexandru NazareThe Finance Minister announced the significant reduction in the budget deficit on Facebook, emphasizing its credibility.

Minister Nazare highlighted that this solid and credible correction was driven by both increased budget revenues, which grew by 12.3% exceeding economic growth, and stringent control over expenditures. The emphasis on fiscal discipline, including personnel costs, demonstrates a balanced approach to fiscal consolidation. This success is crucial for Romania's financial credibility, especially at a time when markets are quick to penalize fiscal deviations.

Este un rezultat major pentru credibilitatea financiarฤƒ a Romรขniei, รฎntr-un moment รฎn care pieศ›ele penalizeazฤƒ rapid derapajele.

โ€” Alexandru NazareNazare stressed the importance of this result for Romania's financial credibility in the current market environment.

Furthermore, the government, led by Ilie Bolojan, has maintained a high level of public investment, primarily financed through European funds. This strategy ensures continued development without placing additional strain on the deficit or domestic borrowing. The acceleration of European fund absorption is a key factor in financing these development projects. The Ministry of Finance anticipates that these positive fiscal indicators will help temper the effects of recent interest rate hikes and reassure markets of Romania's responsible fiscal direction.

Pe componenta de cheltuieli รฎnregistrฤƒm o scฤƒdere a acestora ca pondere รฎn PIB ศ™i o disciplinฤƒ clarฤƒ, inclusiv la cheltuielile de personal.

โ€” Alexandru NazareThe minister pointed out that expenditure as a share of GDP has decreased, with clear discipline, including in personnel costs.
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Originally published by Adevฤƒrul in Romanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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