Romania Might Face EC’s Excessive Deficit Sanctions –PM

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.