EU warns Romania about exceeding the budgetary deficit. EC Commissioner Moscovici points to alarming estimates for 2017 and 2018

The European Commission wants credible assurances from Grindeanu cabinet that the budget deficit target will not be exceeded. The request comes from the European Commissioner for Economic and Financial Affairs, Pierre Moscovici, in the context that the EC believes Romania will not meet the budget deficit of 3% of the GDP. According to the latest estimates, the deficit will reach 3.6% in 2017 and could reach 3.9% in 2018, digi24.ro informs.

Pierre Moscovici said on Wednesday, in Brussels:  “I inform you I have sent a letter to the Romanian authorities in order to stress the risk to exceed the deficit limit this year and next year. Our estimates show that Romania’s budget deficit will reach 3.6% of GDP this year, if no changes in (economic) polices take place and 3.9% of GDP in 2018. These developments are generated by a combination of tax cuts and wages and pensions increases. We have urged the Romanian authorities to announce in due time and in a credible way, before our spring outlook, the needed measures to ensure the meeting with the budget pact,” Moscovici said.

These firm statements come after the visit paid to Brussels by Finance Minister Viorel Stefan for talks with Pierre Moscovici and EC Vice-President Valdis Dombrovskis on macro-economic issues and the budget for 2017.