Romania's Budget Deficit Remains Low Amid Pfizer Penalty Concerns

Chief economist Ionuț Dumitru of Raiffeisen Bank said Romania’s budget deficit for the first five months of 2026 is smaller than the same period in 2025, but cautioned that it is premature to judge whether the year‑end target of 6‑6.2% of GDP will be met. He noted the deficit, at about 1.75% of GDP, is below expectations, yet the country must still accommodate a €600 million penalty to Pfizer over a cancelled COVID‑19 vaccine contract and contend with modest economic growth. Dumitru highlighted the high cost of public‑debt financing – a 7% interest rate translating to roughly 3% of GDP – which narrows fiscal space and underscores the need for continued consolidation. Uncertainties in government financing and potential second‑half surprises mean the final fiscal outcome remains uncertain.