President Basescu Informed EC That Romania Will Join Fiscal Union Pact

The head of state said the Romanian Parliament will decide on this matter.

One of the fiscal rules agreed upon in Brussels states structural deficits should not exceed 0.5% of the gross domestic product, said Basescu. The pact does not force Romania to amend its fiscal legislation, as long as the country observes deficit and government debt caps, he added.

Also, Romania will not have to revise the draft 2012 state budget, which states a budget deficit of 1.9% of the gross domestic product.

The draft state budget and the social security budget, recently approved by the Government, will be debated by the Parliament on Monday.

Basescu pointed out that Romania must transpose the new financial regulations into its Constitution and firmly rejected the Opposition's proposition that they be transposed into the national legislation through a special law.

The president said he invites parliamentary parties for consultations on signing up for the fiscal union pact on Wednesday.

He said European politicians have concealed the fact that the EU Stability and Growth Pact recommended structural deficits of maximum 0.5% and surplus budget policies, and argued that this is one of the causes that contributed to the current situation in the EU.

Prime Minister Emil Boc said Friday Romania is in favor of imposing stricter fiscal rules in the European Union, including penalties for exceeding a budget gap of 3% of the gross domestic product and a government debt of 60% of GDP.

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