The upward revision to Romania’s 2025 budget deficit highlights the challenge of arresting the severe deterioration in the public finances and implementing consolidation measures sufficient to reduce large fiscal deficits and stabilize debt over the medium term, per an analysis by international rating agency Fitch Ratings, released on Friday (October 10).
Fitch Ratings has announced in a press statement that the fiscal package unveiled by Romania's Government led by Prime Minister Ilie Bolojan is expected to have a substantial budgetary impact, estimated at 1.1% of GDP in 2025 and at 3.5% in 2026.
International rating agency Fitch Ratings says that reducing record deficits and stabilizing public debt remain essential for assessing Romania’s sovereign rating after the presidential election held in May 2025.
Romania’s general election result points to continued political uncertainty and hence a still-challenging policy-making environment and the need to pass a 2021 budget will be a near-term test of the next administration’s cohesion and an indication of likely fiscal policy settings, Fitch Ratings said