Financial Times: Romania risks economic collapse due to austerity measures

The Romanian government, led by Finance Minister Alexandru Nazare, is implementing austerity measures to reduce the 9.3% of GDP public deficit, the highest in the EU, including raising VAT and suspending public sector pay and pension increases. Public protests, fueled by far-right opposition, continue to be a problem as the government faces political and economic challenges. Necessary reforms, including on special pensions, are key to accessing EU post-pandemic recovery funds. The governing coalition remains fragile and its future uncertain.