Finance Ministry assures EC that budget deficit will not exceed 3%
The Finance Ministry sent a letter to European commissioners Valdis Dombrovskis and Pierre Moscovich showing that it will keep deficit under 3% of GDP, although the European Commission shows that Romania will exceed the deficit target, reaching 3.6% in 2017.
The letter of European commissioners Dombrovskis and Moscovich was sent to the Ministry of Public Finance in the context of the release of EC reports on the economic and social situation of member states. The Commission analysis is part of the European Semester procedure and includes an evaluation of unbalances existing in certain member states.
According to these reports, EC found economic unbalances in 12 member states, their situation being monitored. They sent a formal letter to Romania, without identifying economic unbalances.
The European Commission shows in the 2017 country report referring to Romania that fiscal policy became pro-cyclic in 2016 and that public deficit was growing. Under the effect of significant tax cuts and growing expenses, public deficit will grow from 3.6% in 2017 to 3.9% in 2018.