Romanian Draft Constitution: Budget Gap Limited To 3% Of GDP

Romania's budget gap may not be wider than 3% of the gross domestic product, while the public debt may not exceed 60% of the GDP, says the draft revised Constitution, published Wednesday by the Presidential Administration.

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A new article, introduced by the draft after article 138, sets limits on the budget deficit and public debt.

The new article's second section says "foreign loans may be contracted only for investments." Exceptions are provided in the case of natural disasters or "exceptional situations with a negative impact on public finances," but only with the consent of the majority of MPs and only if the higher deficit can be compensated in no more than three years.

Other foreign loans may be contracted "to prevent the consequences of a natural disaster," again with the consent of the majority of MPs, according to the draft.

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