Alexandru Nazare says that Moody’s supports political stability, a credible budget for 2027, and the reduction of Romania’s deficit

Riana Gegiu

20 October 2026, 12:07

Economy

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Finance Minister Alexandru Nazare says rating agency Moody’s views the swearing-in of the new Government and the timely adoption of the 2027 budget positively. According to the minister, these objectives could reduce political uncertainty and support the continuation of fiscal reforms and the strategy for restoring public finances.

Nazare said in a Facebook post that Moody’s maintains its forecast for a reduction in Romania’s budget deficit, from 7.9% of GDP in 2025 to 5.8% in 2026 and 5.5% in 2027. The primary deficit is expected to fall to 2.7% of GDP in 2026 and 2.3% in 2027.

However, the agency warns that the fiscal consolidation process carries significant implementation risks. Romania will have substantial financing needs over the next two years, while political stability and predictability in fiscal decisions are essential for accessing markets on reasonable terms.

The minister says the 2027 budget will be one of Romania’s main tests of financial credibility. He stressed the need for a realistic budget, responsible execution and measures that will help stabilize public debt.

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Context: Romania is in discussions with rating agencies, while Nazare calls for budgetary discipline to avoid a downgrade

Previously, Finance Minister Alexandru Nazare warned that Romania must reduce its deficit and avoid being downgraded to “junk” status, as public debt had reached approximately 60% of GDP and financing costs were rising. He linked the risks to unfunded legislative initiatives, as well as to the pressures expected in 2027, including the loss of PNRR grants and the continuation of high interest rates.

During the same period, Nazare held talks with Moody’s representatives as part of an ongoing assessment and called for a coherent political message regarding fiscal and budgetary responsibility, after Fitch maintained the sovereign rating at “BBB minus” with a negative outlook. The minister emphasized that the agencies are analyzing both financial data and political stability and the ability to continue fiscal reforms.