EU: Romania Could Miss 2010 Deficit Target Over Difficult Spending Cuts

„However, the Romanian government has committed itself within the framework of the balance-of-payments support program to implement additional measures in case those currently agreed upon do not yield the necessary savings to achieve the budget deficit target for this year,” the authorities in Brussels said.

They said Romania’s updated convergence program for 2009-2012 is mostly in line with EU regulations, but the authorities must rigorously implement the fiscal consolidation measures for 2010 to achieve this year’s deficit target.

The Romanian authorities pledged to bring the budget deficit down to 5.9% of the gross domestic product, from a gap of 7.2% of GDP in 2009.

As to the targets for 2011 and 2012, the Commission said Romania might face additional difficulties, particularly in light of the „potential negative impact of the election cycle on public finances.”

The Commission also invited the authorities in Bucharest to specify, by end-May, the fiscal measures necessary to achieve the budget targets for 2011 and 2012.