Can Romania cope with its debts?
Romania is forecast to have a budget deficit of around eight percent this year. According to EU rules, member states are required to keep their budget deficit below three percent of GDP and gross government debt below 60 percent of GDP. In October, Romania and other highly indebted states are to present Brussels with a detailed plan for the coming years. The national press is not optimistic.
Reserves needed in these uncertain times
There are too many variables in this equation, Adevărul complains:
“This year has been dry, and it is unclear what the agricultural sector's contribution to the GDP will be. More years of drought could follow. Another uncertainty is how the political situation will develop after the parliamentary elections [in December]. In the event of a protracted government formation process, we will begin 2025 without an approved budget. We also don't know how the war on our border will evolve, or how high the military budget for border defence will have to be. ... Not having any budgetary reserves and, what's more, having a debt level of 52 percent of GDP is extremely foolish in the current situation.”
Deeper and deeper in debt
Jurnalul National expresses concern about the news that the state has recently taken on further debt:
“Romania walks into a bar, orders a drink and tells the bartender to put it on a tab. The bartender replies, 'Why don't you try to cut back a little, because the tab is getting longer and longer?' Romania smiles, 'To be honest, I have a lot of bills to pay.' It's actually no laughing matter. Romania is becoming dependent on foreign loans, which it needs to cover current expenses and the budget deficit. In the short term, borrowing seems like a solution. In the long term it creates an ever-increasing financial burden.”