Minister of Finance: ”2027 may be even more difficult than 2026”

Interim Finance Minister Alexandru Nazare warns that Romania’s 2027 budget could be more difficult than the 2026 budget and calls for caution, prudence and responsibility in managing public funds. The statement comes in the context of an assessment by rating agency S&P, to which the official says he presented both the results achieved and the risks facing Romania.

Nazare says the country will enter 2027 with existing budgetary pressures. These include higher defense spending, including investments financed through the SAFE instrument; the structural problems of public administration; pressure to restore purchasing power after two years without salary and pension indexation; and obligations arising from unpaid court rulings.

On the revenue side, the minister says tax evasion and the gray economy continue to affect state revenues, despite the progress brought by digitalization. In addition, some taxes are expected to be reduced or eliminated, which will diminish budget revenues.

Another challenge is the end of exceptional financing through the National Recovery and Resilience Plan (PNRR). To maintain investment, Romania will have to rely more on cohesion funds, private capital and the prioritization of national projects. Nazare warns that the state cannot commit to permanent spending without solid sources of financing and maintains that the budget must be realistic, credible and focused on shifting from stabilization toward economic growth.