November 18 (SeeNews) - The European Commission said on Wednesday that it has decided not to take further steps within the excessive deficit procedure for Romania at the moment due to the uncertainty caused by the coronavirus pandemic but will reassess the country's fiscal situation next spring.
"In the light of the continued exceptional uncertainty created by the COVID-19 pandemic and its extraordinary macroeconomic and fiscal impact, the Commission considers that no decision on further steps in the Romania’s EDP can be taken at this juncture," the Commission said in its country-specific recommendations on Romania which are part of the European Semester Autumn 2020 Package.
However, the Commission will reassess Romania’s budgetary situation based on the 2020 outturn data, 2021 budget and the Commission's 2021 forecast in spring 2021.
If appropriate, the EU's executive body will propose new steps under the excessive deficit procedure, taking into account the continued application of the general escape clause of the Stability and Growth Pact in 2021.
The Commission said that the deterioration of the economic outlook and the introduction of emergency measures to combat the COVID-19 pandemic and its economic and social consequences can only partly explain the projected rise in the deficit.
In March, the Commission proposed to the Council to open an excessive deficit procedure for Romania and adopted a recommendation to the Council setting out the adjustment requirements for avoiding the EDP. The proposed recommendation provides that Romania should pursue a credible and sustainable adjustment path with a view to putting an end to the excessive deficit by 2022, at the latest.
Romania's consolidated budget deficit is expected to rise to 9.1% of GDP this year, finance ministry analysts said on Wednesday.
On Tuesday, Romanian authorities reported 10,269 new cases of Covid-19 registered in a single day, after performing 37,906 tests. Total coronavirus cases in the country reached 383,743 while the death toll climbed to 9,429, the latest data from the health ministry showed.
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