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EC urges Romania to tighten fiscal policy, speed up RRP reforms

Jun 20, 2024, 11:04:42 AMArticle by Alexandru Cristea
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June 20 (SeeNews) - Romania needs to tighten its fiscal policy and accelerate the implementation of cohesion policy programmes and the Recovery and Resilience Plan (RRP), including the REPowerEU chapter, the European Commission said.

EC urges Romania to tighten fiscal policy, speed up RRP reforms
Photographer: Bogdan Hoyaux. Source: EC - Audiovisual Service.

Romania should limit its net expenditure growth in order to reduce the general government deficit towards the reference value of 3% of gross domestic product (GDP) established by the Stability and Growth Pact, the Commission said in its country-specific recommendations, part of the European Semester 2024 Spring Package, on Wednesday. The EU executive urged the country to submit its medium-term fiscal-structural plan in a timely manner, with the deadline set on September 20, 2024.

"In 2020, the Council decided that an excessive deficit existed in Romania, based on 2019 data. According to the Commission's assessment, Romania has not taken effective action to correct this and put an end to its excessive deficit situation," the Commission said in a separate press release on Wednesday.

Romania needs to strengthen its administrative capacity and guarantee effective governance in order to ensure the completion of RRP-related reforms and investments by August 2026. Moreover, the country should take action to better address the needs regarding social housing and social services as well as the development of smaller urban areas.

Lastly, the Commission advised Romania to consider the opportunities provided by the Strategic Technologies for Europe Platform initiative to boost investments and improve competitiveness in critical technology sectors, such as biotechnology, deep-tech innovation, and clean technologies.

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