The European Commission has initiated the macro-economic conditionality procedure against Romania because of its deteriorating fiscal situation (see EUROPE 13676/23), in a letter sent on Monday 28 July to the Chairs of the European Parliament’s Committees on Economic and Monetary Affairs (ECON) and Regional Development (REGI).
At the beginning of July, the Council of the EU adopted the revised fiscal consolidation path for this Member State, which has been subject to an excessive deficit procedure since 2020. The aim is to reduce Romania’s deficit from 9.3% of GDP in 2024 to 2.8% in 2030.
Nevertheless, according to the Commission, the fiscal consolidation measures announced by the Romanian authorities and approved by the national parliament in mid-July could enable Bucharest to escape financial sanctions, if these measures are effectively implemented. The Commission will reassess the situation in mid-October, when it presents its autumn economic package.
In the meantime, MEPs could engage in a structured dialogue with the Romanian authorities and the EU institution.
In 2016, an identical procedure was initiated against Spain and Portugal for breaches of European fiscal rules. Deemed counter-productive, it did not result in any financial penalties under the Stability and Growth Pact (see EUROPE 11605/8) or in the suspension of structural and investment funds (see EUROPE 11669/2). (Original version in French by Mathieu Bion)