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Romania fiscal deficit and integrity law disputes

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2026-09-04 11:27 UTC → 2026-09-05 09:53 UTC · added ~~removed~~

Romanian political and fiscal leaders remain engaged in a debate regarding the nation’s budget deficit and fiscal management. While earlier reports indicated a decrease in the consolidated general budget deficit to 2.34% of GDP for the first seven months of the previous year, Daniel Dăianu, president of the Fiscal Council, has warned that the deficit exceeded 9% of GDP in 2024. Dăianu emphasized that large-scale tax evasion is a ‘cancer’ that must be addressed to prevent severe economic consequences and to help reach the official target of reducing the deficit to 6.2% of GDP by 2026. He noted that interest costs on public debt have reached approximately 60 billion lei annually. Adding to fiscal concerns, the government faces scrutiny over its Integrity Law. The European Commission has officially requested clarifications regarding the ‘Fritz amendment,’ a provision critics argue may violate EU principles of legal certainty and non-retroactivity. European Parliament leaders have suggested suspending a 770 million euro payment from the National Recovery and Resilience Plan (PNRR) if the law is found incompatible with EU standards. Prime Minister Ilie Bolojan and Foreign Minister Oana Țoiu have initiated technical discussions with the European Commissioner for Justice to resolve these ~~discrepancies and ensure~~ discrepancies. Dragoş Pîslaru has further clarified that if the ~~absorption~~ Directorate-General for Justice confirms the amendment violates European treaties, the Secretariat-General for Reform will be informed, potentially leading to a negative evaluation of PNRR funds. In response, the Romanian Government has requested the European Commission to accelerate its evaluation, seeking to allow Parliament to correct any violations before the next funding milestone is determined after September 30. Political opposition, including MEP Rareș Bogdan and members of the PSD, continues to challenge fiscal figures, arguing that deficit reductions stem from tax increases and deferred payments to contractors and employees rather than structural reform.

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