Romania PM Calls On Lawmakers To Debate Fiscal Liability Law With Urgency

In November 2009, the government decided the fiscal liability law will be sent to Parliament as a legislative initiative, under the signature of democrat liberal ministers who are also lawmakers.

Under the law, salaries will no longer be increased six months ahead of elections, local authorities will be compelled to draft financial plans for a three-year period and there will be a maximum two budget revisions per year. Also, contenders in presidential or local elections making election promises that involve budget resources will also be compelled to draft financial plans for a three-year period and say where they will get the money to keep their promises.

The government recently said it will introduce a fiscal liability law to limit budget revisions and will set up a Fiscal Council meant to ensure an independent and expert evaluation on the budget and macroeconomic forecasts.

The Romanian authorities pledged in the negotiations with the International Monetary Fund and the European Commission for a EUR20 billion aid package to adopt the fiscal liability law.