Romania’s rising debt and economic indicators spark fiscal concerns

Romania’s external debt reached €230.9 billion in May 2026, driven largely by state borrowing, with long‑term liabilities accounting for almost 80 % of the total. Analysts warn that the real challenge will emerge in 2027 as deficit targets become tighter. Inflation remains the highest in the EU at 9.2 % year‑on‑year, despite a modest slowdown, while the national stock market showed modest gains, the Bucharest Stock Exchange’s main BET index rising around 0.3 % to 34,959 points and trading volume exceeding €40 million. Eurostat data on household debt places the Netherlands at the top of the EU with debt equal to 93.5 % of GDP, while Romania sits near the bottom at 12.3 % of GDP, illustrating a stark contrast between household indebtedness and the country’s soaring public debt. Foreign direct investment has fallen sharply, down about 25 % in the first five months of 2026, raising questions about the effectiveness of recent austerity measures.