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Iohannis: If budget revision adopted by Parliament takes effect, Romania to be cut 3bn euros in EU funds
President Klaus Iohannis said on Wednesday that senior European Commission officials had warned that if the budget revision approved by Parliament came into force, Romania would cut about 3 billion euros in European funds mentioning that this is a "horror" scenario, because the country rating would also be downgraded.
"Unfortunately, both scenarios are possible. There are not only warnings, there are extremely serious discussions with senior officials, I do not want to give names, from the European Commission, who told us frankly: if this revision approved in Parliament enters into force, about 3 billion euros will be cut from European funds because we are violating several provisions of the treaties, so it is a possibility, and rating agencies will certainly change the country's rating for much worse, given that these huge expenditures would be operated. We are not talking about the fact that, for these expenses, there is simply no money," said Iohannis, at the press conference, asked if Romania risks having suspended European funds and the rating agencies downgrade the country rating following the adoption of the budget revision in Parliament.
He mentioned that these increases in teachers' salaries and the pension point by 40% will be possible only after Romania emerges from this economic crisis and the country's finances stabilize.
The president maintained that the budget revision was adopted by the majority in Parliament "led by an irresponsible PSD [Social Democratic Party]".