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Romania’s Pres Deems State Budget Has Difficulties In Covering Expenses

Romania’s President Traian Basescu said Monday the state budget has difficulties in covering all the expenses and the Finance Ministry frequently borrows money to finance the public spending.
Romania's Pres Deems State Budget Has Difficulties In Covering Expenses
04 mai 2009, 18:00, English

The statement was made after the European Commissioner for Economic and Monetary Affairs Joaquin Almunia said the Commission would launch an excessive budget deficit procedure against Romania.
 
EC’s announcement shows the “crude and painful reality” of this year’s budget and can have an impact upon teachers, magistrates and civil servants, Basescu said.
 
The president added that "putting pressure on the state budget leads nowhere," referring to the announced protests from public employees that demand salary increases.
 
EC would launch disciplinary budget procedures against EU states that exceeded the 3% of the GDP deficit limit, as envisaged by EU budget rules, including Romania, Almunia said Monday.
 
In 2008, Romania’s public deficit stood at 5.4% of the GDP, according to the EC calculation method.
 
EC revised Monday its forecast on Romania’s budget deficit in 2009, at 5.1% of the GDP, from previously seen 7.5% of GDP.