Romania faces tighter fiscal outlook for 2027, warns interim Finance Minister Nazare

Interim Finance Minister Alexandru Nazare warned that Romania’s 2027 fiscal plan could be more challenging than one outlet year, given persistent pressures on public finances. He stressed that the next budget must be built on cautious spending, prioritisation and reliable revenue sources, especially as existing liabilities and increased defence spending loom. In talks with Standard & Poor's, Romania presented both its fiscal consolidation results and the economic risks it faces, underscoring that investment-grade ratings depend on concrete performance.

Nazare pointed to lingering issues such as public-sector administration efficiency, the need to restore purchasing power after two years without indexation, and unpaid court-ordered obligations. While tax collection has improved, significant tax evasion and grey-economy activity remain, and digital tools will only yield results over several years. The minister added that the phase-out of exceptional PNRR financing will require better use of EU cohesion funds, prioritised national projects and greater private-sector participation to sustain investment levels.