Romania faces EU scrutiny over spiraling budget deficit

Business Forum

5 June, 2025 at 8:32 AM

Romania finds itself under scrutiny regarding its fiscal position and ongoing macroeconomic imbalances in the European Commission's 2025 European Semester Spring Package.

For Romania, the EC has identified significant concerns regarding its net expenditure growth, which is "significantly above the ceiling set by its corrective path." It added that this deviation poses "clear risks to correcting its excessive deficit by 2030."

Consequently, the Commission is recommending that the Council adopt a decision stating that Romania "has not taken effective action" to address its excessive deficit.

Romania is aiming to lower its budget deficit to 7% of GDP from 9.3% of GDP during 2024. The deficit was already close to 3% of GDP by April 2025.

“Romania continues to experience excessive imbalances as its fiscal and current account deficits widened and cost competitiveness deteriorated in 2024,” said the EC.

In contrast to Romania, several other EU members, including France, Italy, Hungary, Malta, Poland, and Slovakia, are not currently facing further steps under the excessive deficit procedure (EDP) at this stage.

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