Romania will negotiate a seven-year agreement with the new European Commission to return to the 3% deficit target, Prime Minister Marcel Ciolacu announced on Tuesday. He emphasized that the country is in a period of “accelerated” development and that it is crucial for investments to continue.
“We are not the only state going through a period of accelerated development. And, from my point of view, it is the most important period for Romania until we complete the current financial year and the PNRR. In other words, I think that about 2.65 out of 3.06, as it were, we are with the deficit, about 58 billion lei are directly invested (…) in investments. There are some details that we will negotiate together with the Minister of Finance, with the new Commission, with the new commissioners. What I can tell you is, for example, that the World Bank has given us a loan to cover the deficit.I assume that the World Bank saw Romania’s pace of development and did not consider it a risk for an investment in Romania”, said Ciolacu, when asked what measures to reduce expenses were discussed by the coalition on Monday in order to reduce the budget deficit.
According to him, the Government must be allowed to negotiate with the European Commission regarding the budget deficit.
“We have to decide, do you want us to enter the logic in which, in two months, if you want, I stop any investment and we have a 3% deficit? I don’t have a problem. With all the expenses that increased in salaries and you know very well that the expenses in salaries increased last year in education and health, after a social crisis and after the biggest strike in the education system. (…) There will be a negotiation at ECOFIN, from my point of view, we will try to have the re-entry agreement in seven years… I repeat, I prefer you to ask me daily about the deficit and to continue the investments. I am not stopping the investments in Romania. (…) Let us negotiate with the Commission. These things are not negotiated publicly”, PM Ciolacu said.
He added that other European states also have to manage the problem of excessive budget deficit. “The same thing, for example, I was talking to Pedro Sanchez (the Spanish prime minister), I said: sir, I got close to 50% of the public debt. He told me: Marcel, I have 110 and I haven’t since yesterday. In the same period, Portugal, Spain and Italy passed. (…) I received financing from the World Bank, I received financing from the United States of America two billion, I see that it is possible, with 3%. I see that it is possible, yes?”, he pointed out.
The post Romanian PM to Negotiate Budget Deficit with EU for 3% Target appeared first on The Romania Journal.
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