Romania is in danger of finding itself in an extremely difficult financial position, to the point that it may even face problems in meeting the basic nutritional needs of its population, unless authorities fulfill all the conditions for securing financial support from European funds. The warning was addressed by Eugen Rădulescu, advisor to the governor of the National Bank of Romania, who expressed deep concern over the trajectory of public finances. "Slowly but steadily, we are heading towards disaster. The NRRP program will come to an end and Romania risks failing to utilize the final installments," he wrote in a post on Facebook, warning characteristically that "we will eat grass and tree bark." According to him, part of the problems is linked to the political crisis that has emerged in the country. Since April 20, Romania has lacked a fully functional government, as political forces have failed to reach an agreement on a candidate for prime minister. Rădulescu also criticized union representatives who are reacting to the wage cuts being promoted as part of the effort to cover fiscal needs and have proceeded with protests.
"When public debt exceeds 60% of GDP and the fiscal deficit remains at around 6% of GDP every year, how exactly do trade unions expect to increase their incomes in the coming years? Gentlemen, wake up!" he specifically noted. As he warned, this situation could lead to a significant decline in nominal incomes, rising unemployment, and double-digit inflation, with consequences lasting for several years. Concern is also heightened by the progress of European funding. The Ministry of European Funds of Romania reported in July that the country risked losing up to 4.5 billion euros if it did not proceed in time with the implementation of a series of reforms required under the NRRP framework. Earlier, Prime Minister Ilie Bolojan admitted that Romania is facing a particularly difficult economic situation, which led the government to take measures to curb state spending. He largely attributed the current fiscal pressure to the fact that government expenditures in previous years had increased far beyond the country's actual economic capacity.
Suffocating fiscal figures
At the same time, the state of the Romanian economy remains under severe strain at the level of fiscal metrics. According to forecasts by the European Commission, the country's budget deficit is expected to stand at 6.2% of GDP in 2026, down from 7.9% in 2025, while remaining at a very high level. At the same time, public debt is projected to continue rising and reach approximately 63.3% of GDP in 2027, as increased borrowing needs, primary deficits, and debt servicing costs weigh on public finances.
Meanwhile, growth prospects remain limited. The Commission estimates that the Romanian economy will grow by just 0.1% in 2026, as fiscal adjustment and high inflation are expected to curb consumption and put pressure on household incomes. A recovery in growth to 2.3% is predicted for 2027, provided that inflationary and financing pressures subside. Particularly critical is the utilization of resources from the Recovery and Resilience Facility (NRRP). Romania still has significant amounts to absorb, while the government has engaged in a race against time to complete the required reforms and investments. European funds finance, among other things, projects in infrastructure, transport, railways, healthcare, education, and energy upgrades, making their timely utilization decisive for economic activity. In the same context, the European Commission continues to record significant macroeconomic imbalances in Romania, which are mainly linked to high fiscal and external deficits. The loss of European funds, combined with the need for a stricter fiscal policy, could further weigh on the economy, restricting public investments and increasing pressure on incomes and consumption.
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