EC evaluation: Romania unlikely to re-balance budget by 2011

The report reads that the budget strategy included in the report does not outline a prudent fiscal policy that would be able to control the deficit. In order for Romania to officially adopt the European single currency, it needs to control the inflation rates and reduce the budget deficits by at least 3% of GDP.

Likewise, Romania needs to cut its public spendings and stop inflation which, if uncontrolled will deepen the deficit even more. The EC report estimates that Romania’s inflation will reach in 2008 almost 5.6 – 5.7%.