EU, Romania: The European Commission warns on large deviations from the medium-term budgetary objective

The European Commission issued a warning yesterday on Romania’s significant deviation from the medium-term budgetary objective in 2016, according to an EC press release. It is the first time when such a procedure is initiated.

Romania is expected to take measures to correct the deviation based on recommendations from the European Council. Romanian authorities will have the opportunity to take corrective action to avoid the opening of an excessive deficit procedure.

These warnings are part of a report published by the European Commission each spring, with economic recommendations for the 28 EU Member States.

Liviu Dragnea, the leader of the governing Social Democratic Party (PSD), was not happy with the EC’s new warning. “In Europe, there are two voices on fiscal discipline. When France and Spain exceed the 3% budget deficit threshold, nobody minds. When Romania has the highest economic growth in EU, we are again reminded about austerity,” Dragnea said.

“I think that rules should be the same for all. Romanians’ salaries are 2-3-4 times lower than the Europeans’. We have to increase them to stop young people from leaving the country,” he added.

 

 

Source: EC press release.

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