Romanian Prime Minister Marcel Ciolacu will seek a confidence vote in parliament as a way to fast track the approval of fiscal measures aimed at reining in a widening budget deficit this year.
(Bloomberg) — Romanian Prime Minister Marcel Ciolacu will seek a confidence vote in parliament as a way to fast track the approval of fiscal measures aimed at reining in a widening budget deficit this year.
The premier said negotiations with the European Commission may push a target to bring the spending back toward 3% of gross domestic product to 2025 rather than 2024. This year’s shortfall will be wider than the previously estimated 4.4%, but lower than 6.2% in 2022, Ciolacu said.
“There is some flexibility from the Commission’s side, as they acknowledge Romania’s efforts to help its neighbors Ukraine and Moldova in the war of aggression started by Russia,” Ciolacu told reporters in Brussels Friday. Talks with Commission officials will continue next week, he said.
While Ciolacu’s ruling coalition controls a majority in parliament, putting the issue to a confidence vote risks giving the opposition the chance to oust him from power.
The Romanian leader didn’t disclose the new budget deficit target for this year, but said there won’t be an increase in the value-added tax as sought by European authorities, because of the pressure it would put on inflation and growth.
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