Romania posts record EU fund absorption, cuts budget deficit and leads regional internet speed rankings

Romania topped the nPerf ranking for fixed‑line internet among countries of comparable size, scoring 128,587 nPoints and surpassing the United Kingdom, Sweden and Norway. The result reflects strong broadband performance for households, businesses and public services. In the fiscal year June 2025‑June 2026 the country attracted a record €10.42 billion in EU cohesion funds, more than tripling the previous year’s intake and moving Romania to second place in the EU for net fund absorption. Absorption reached 97 % of the current EU budget cycle, with the Recovery and Resilience Fund contributing over €2.9 billion. The state budget deficit fell to 35.94 billion lei, or 1.75 % of GDP, down from 3.35 % a year earlier. Revenues rose 9.2 % driven by higher VAT, income‑tax and EU‑fund repayments, while spending was trimmed modestly and investment continued to grow. The National Bank of Romania reported a profit of 2.34 billion lei in 2025, 80 % of which was transferred to the state budget, underscoring a solid monetary‑policy stance and a favourable balance‑sheet position. Housing prices kept rising. In Bucharest the average price of a new apartment reached about €2,300 per square metre, a 10‑13 % annual increase, while houses in Brașov averaged €2,200 per square metre. At the same time, Romania remained one of the cheapest EU members for consumer goods, with prices 35 % below the EU average, second only to Bulgaria. Construction costs for residential buildings have surged 130 % over the past decade, placing Romania among the EU’s fastest‑growing cost markets. In the credit market, banks tightened standards; non‑government lending grew only modestly, corporate borrowers shifted toward euro‑denominated loans, and the overall credit‑to‑GDP ratio stayed at the lowest level in the EU.