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Dombrovskis: Fiscal sustainability is a prerequisite for economic growth and improving living standards

by AI | 28.Oct 2025 | Europe in brief AI

The visit of the European Commissioner for Economy and Productivity, Implementation and Simplification, Valdis Dombrovskis, to Bucharest provided a new framework for dialogue between Romania and European institutions.

Joint press statements held by Prime Minister Ilie Bolojan and Valdis Dombrovskis, European Commissioner for Economy and Productivity, Implementation and Simplification (c) https://web.facebook.com/guv.ro

Bucharest – Fiscal sustainability is an essential condition for economic growth, economic stability, and improving the standard of living – said Valdis Dombrovskis, the European Commissioner for Economy, after meeting with Prime Minister Ilie Bolojan at the Victoria Palace on Tuesday.

The Latvian politician stated in front of the press that Romania’s economy has performed well over the last decade, but the budget deficit and current account deficit have increased at a worrying pace. He reminded that last year, the deficit relative to GDP reached 9.3%, the highest level in the entire European Union. “That is why courageous measures are essential to correct the situation and reduce Romania’s vulnerabilities,” he emphasized.

Valdis Dombrovskis explained that, according to the expectations of the European Commission, this year’s budget deficit should not exceed 8.4%, and Romania must also meet the deficit target for 2026, in order to strengthen the positive results already achieved.

He mentioned that, based on reports from the authorities in Bucharest and the measures taken in recent months, the Commission will determine by the end of November whether Romania can meet the fiscal requirements imposed under the excessive deficit procedure. In the case of a positive assessment, Romania will be able to avoid the suspension of European funds, the commissioner explained.

Additionally, the European official emphasized the importance of respecting the commitments made through the National Recovery and Resilience Plan (NRRP). He added that, besides the funds from the NRRP, Romania can rely in the coming years on substantial support from the European Union through cohesion funds, the SAFE program for defense, and the long-term European budget. “It will be essential for Romania to ensure coherent, stable, and transparent mechanisms to facilitate the use of these resources,” concluded Dombrovskis. (28.10.2025)