close
close

The EC urges Romania to tighten fiscal policy and accelerate reparations reforms

June 20 (SeeNews) – Romania must tighten its fiscal policy and accelerate the implementation of the cohesion policy programs and the Recovery and Resilience Plan (RRP), including the REPowerEU chapter, the European Commission said.

Romania should limit its net expenditure growth to reduce the government deficit to the reference value of 3% of gross domestic product (GDP) as set out in the Stability and Growth Pact, the Commission said in its country-specific recommendations, part of the European Spring Package Semester 2024, on Wednesday. The EU executive urged the country to submit its medium-term fiscal structure plan on time, with a deadline of September 20, 2024.

You can download the Renewable Energy in South East Europe 2024 report here

“In 2020, the Council decided that an excessive deficit existed in Romania, based on 2019 data. According to the Commission’s assessment, Romania has not taken effective action to correct this and end its excessive deficit situation,” the Commission said. a separate press release on Wednesday.

Romania needs to strengthen its administrative capacity and ensure effective governance to ensure the completion of reforms and investments related to the recovery policy by August 2026. In addition, the country needs to take action to better meet the needs of social housing and social services, as well as the development of smaller urban areas.

Finally, the Commission recommended Romania to consider the opportunities offered by the Strategic Technologies for Europe Platform initiative to boost investments and improve competitiveness in critical technology sectors, such as biotechnology, deep-tech innovation and clean technologies.

Related Posts