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The European Council on Friday adopted a recommendation under the excessive deficit procedure for Romania that Romania should put an end to the excessive deficit situation by 2024 at the latest.

"The Council found that an extension to the current deadline for Romania to correct its public deficit would be important in order not to compromise the economic recovery after the COVID-19 pandemic. The new deadline for correcting the excessive deficit allows for a more gradual effort and a balance between fiscal consolidation and the economic recovery," reads a press statement released by the European Council.

The recommendation indicates that, in order to meet this new deadline, Romania would need to achieve a general government deficit target of 8.0% of GDP in 2021, 6.2% of GDP in 2022, 4.4% of GDP in 2023, and 2.9% of GDP in 2024, which is in line with the Romanian government's objectives.

The European Council says that it has taken into account the changes in the Romanian fiscal situation, budgetary developments in 2020 and the new budgetary strategy put in place and calls for reforms, including in the management of public finances. In this context, the Recovery and Resilience Facility can provide an opportunity for Romania to improve its fiscal situation while still supporting growth and job creation.

The recommendation adopted on Friday takes into consideration the recent developments and sets the new deadline for the correction of Romania's excessive deficit as 2024. Romania is expected to report to the Council by October 15, 2021 on the consolidation strategy to achieve the targets set in the recommendation.. AGERPRES (RO - author: Constantin Balaban, editor: Mariana Nica; EN - author: Corneliu-Aurelian Colceriu, editor: Cristina Zaharia)

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