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Romania Might Face EC’s Excessive Deficit Sanctions –PM

The Romanian Government hopes that Romania won't face excessive deficit sanctions from the European Commission, though recent data indicate this is a possibility, Premier Emil Boc said Tuesday.
Romania Might Face EC’s Excessive Deficit Sanctions –PM
10 feb. 2009, 11:19, English

EC’s most significant financial snaction is to cut European funding, which would then trigger tougher lending conditions.

Romanian finance minister Gheorghe Pogea said end-January that the country’s high budget deficit was not necessarily caused by the financial crisis, and added the European Union might sanction the countries that exceeded 3% of GDP threshold for reasons other than the crisis.

In 2008, Romania’s budget deficit was of 4.8% of the gross domestic product, in cash-terms (used by Romanian authorities), and of 5.25% of the GDP, if commitments are included, according to the European Commission methodology ESA 95.