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The Finance Minister says that rating agencies are keeping a close eye on Romania: “They could show us the red card at any moment”

Gabriel Dumitrache

30 October 2026, 14:16

Current Affairs

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Minister of Finance Alexandru Nazare warns that Romania risks losing its sovereign rating if it does not rapidly and consistently adopt measures to consolidate public finances. The statement was made on Friday, after rating agencies had already sent warning signals following assessments conducted this summer.

Nazare explained that Romania is on the lowest rung of the rating category and that any deviation from the agreed plan could lead to a downgrade. The decision could be made without formal notice, by convening an ad hoc committee of the rating agencies.

The minister described maintaining the rating as an “extremely important safety net,” which helps preserve Romania’s access to financing and protect its credibility on international markets.

At the same time, the Ministry of Finance is working on the report regarding the budgetary situation, requested by the PSD. The document will inventory the country’s structural obligations and supplement the monthly published budget execution. The report is to be presented as soon as possible.

Nazare also said that approving the first budget rectification of 2026 is essential for maintaining investor confidence and protecting the sovereign rating.

Context: Romania entered the rating review period with a reduced deficit and political uncertainties

Before the warning in the main article, Alexandru Nazare declared himself optimistic ahead of Standard & Poor’s review of the sovereign rating, scheduled for October 2. Romania had at that time a BBB-/A-3 rating, with a negative outlook, and the minister said that discussions with the agency had been supported by arguments concerning budget execution and compliance with fiscal targets, in the context in which the Mureșan Cabinet had not received a vote of confidence from Parliament.

At the same time, Nazare presented fiscal indicators as a signal of credibility: after eight months, the cash deficit stood at 2.89% of GDP (compared with 4.51% in the same period of the previous year), while the budget deficit had fallen from 9.3% of GDP in 2024 to 7.9% in 2025. However, he also warned that unfunded legislative initiatives could complicate budget planning for 2027, while snap elections could increase the risk of a downgrade.