Fitch Ratings stresses the need to reduce deficits and stabilize public debt to maintain Romania's rating, affected by political uncertainty

<p>Fitch Ratings, the ratings agency, has warned that Romania needs to reduce record deficits and stabilize public debt to maintain its sovereign rating, already revised to negative. After recent elections, the new government faces major fiscal challenges and a fiscal consolidation plan is urgently needed. The government deficit has widened to 9.3% of GDP in 2024 and the European Commission forecasts a deficit of 8.6% in 2025. The formation of a pro-EU coalition could support inflows of EU funds, but political stability remains uncertain. The next rating assessment is scheduled for August 15.