Romania faces country risk concerns over salary law delay

Romanian Finance Minister Alexandru Nazare has addressed warnings from Moody’s regarding the country’s public salary law. The rating agency noted that while Romania has made progress in consolidating public finances—with 2025 and early 2026 results exceeding expectations—the delay in adopting the new salary law poses a risk to the country’s credibility.

Moody’s indicated that failing to pass the law on time questions the sustainability of fiscal corrections and whether there is sufficient political consensus to control structural expenditure growth. This issue is directly linked to Romania’s 2027 budget and its financing costs, impacting the overall country risk assessment.

Beyond the impact on sovereign risk, the agency estimates that failing to adopt the law could result in the loss of up to €770 million in European Union grants.