November 21 (SeeNews) - The European Commission urged Romania on Wednesday to reduce its structural deficit by at least 1% of its gross domestic product (GDP) in 2019.
The Commission has adopted a revised recommendation for Romania to correct its significant deviation from the adjustment path towards the medium-term budgetary objective because the country took no effective action in response to prior similar recommendations, the EU's executive body said in its 2018 country-specific recommendations, part of the European Semester Autumn Package.
"In light of developments since and following the lack of effective action by Romania to correct its significant deviation, the Commission now proposes a revised recommendation of an annual structural adjustment of at least 1% of GDP in 2019."
The public deficit has increased in Romania from 0.5% in 2015 to 2.9% in 2016 and is forecast to reach 3.3% in 2018, 3.4% in 2019 and 4.7% in 2020 - the highest deficit in the EU.
In June 2018, the Council issued a recommendation to Romania to make an annual structural adjustment of 0.8% of GDP in both 2018 and 2019.
Romania's consolidated budget deficit widened to 1.77% of the projected 2018 GDP in the first nine months, up from 0.81% of GDP in the like period of 2017, finance ministry data showed.
Romania targets a consolidated budget gap equivalent to 2.96% of GDP on a cash basis in 2018, just below the 3% EU ceiling.
Romania's consolidated budget deficit increased to 2.88% of GDP in 2017, from 2.41% a year earlier.