Rating agency Fitch stresses that Romania's deficit reduction depends on the political stability of the coalition government and the fiscal measures announced

Fitch warns that the implementation of fiscal measures to reduce Romania's deficit, the largest in the EU, is linked to the stability of the new coalition government. The government will raise taxes, including VAT, generating additional revenues, but implementation risks cannot be ignored. Although political risks have diminished, the coalition faces internal challenges and changes in leadership could affect fiscal policies in the long run.