The revision of the European Stability and Growth Pact, which allows the member states to operate with the budget deficit and the public debt above the maximum allowed limits, for a period of up to seven years, provided that they make investments in the key areas of the European economy, may represent the chance Romania to ensure the fiscal predictability necessary for long-term sustainable development. For this purpose, the plan to reduce the budget deficit, which is to be submitted in September by the authorities to the European Commission within the excessive deficit procedure, must aim to orient the Romanian economy on a model of sustainable growth, based on investments, which leads to the increase of revenues to the state budget from the intensification of economic activity, simultaneously with a stricter control of state expenditures.
For more information, please see the Romanian version of this article, here.
