Brussels, 16/07/2015 (Agence Europe) - The European Commission regrets the disagreements between Romania and its institutional lenders over fiscal policy.
Euro Commissioner Valdis Dombrovskis said on Tuesday 14 July that it was regrettable that once again, it had not proved possible to conclude the lenders' mission. The structural adjustment programme that Romania must implement in return for financial aid from the EU in the form of a €4 billion preventative credit line, has gone off track, the Commissioner said, despite the country's economic growth (see EUROPE 11250), because of the Romanian government's desire to reduce the tax burden and cut the VAT rate from 24% to 19% in 2016. Dombrovskis added that the possibility that the country's deficit will exceed 3% of GDP is a concern for the financial markets.
According to the European Commission's forecasts, Romanian growth is expected to reach 2.8% of GDP in 2015, and the public debt close to 40% of GDP. (Mathieu Bion)