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EC To Advise Romania Wed To Avoid Excessive Budget Def – Sources

The European Commission will make Wednesday a recommendation to Romania to keep this year’s budget deficit below the Maastricht limit of 3% of gross domestic product, European sources told MEDIAFAX news agency.
10 iun. 2008, 15:38, English

The sources said this would not be an excessive deficit warning, but only a recommendation.

Amelia Tores, spokesman of European Commissioner responsible for Economy and Monetary Affairs Joaquin Almunia, did not confirm or deny the information.
Tores said one of the Commission’s issues on the Wednesday agenda is Romania’s public finance stance.

At the end of January, Almunia said that the budget deficit in Romania is a serious concern, and that the government should aim at more healthy targets to avoid beaching the European norms.

Romania’s five-month budget revenues rose 39% year-on year to 63.35 billion lei ($27 billion), driven mainly by a growth of the state budget revenue.

The Romanian consolidated state budget ran a small surplus of 0.2% of gross domestic product in January-April this year, compared with 0.34% of GDP in the same period last year.

For 2008, the Romanian government is targeting a budget deficit of 2.3 of GDP. The European Union has warned the country it may launch an excessive deficit procedure against Romania as the 2008 deficit is likely to exceed the E.U. limit of 3% of GDP.