The Minister of Finance, Alexandru Nazare, emphasizes the importance of avoiding a downgrade of the country’s rating, following the warning from the Moody's agency regarding political uncertainty.

The major economic stake of Romania is to avoid a downgrade of the country’s rating, declared the Minister of Finance, Alexandru Nazare, following a warning from the rating agency Moody’s.

He emphasized that prolonged political uncertainty and the lack of a functional parliamentary majority could affect fiscal consolidation and the implementation of the assumed reforms. Moody’s highlighted the need for a stable political framework to maintain the fiscal trajectory, which anticipates a reduction of the budget deficit from 7.9% of GDP in 2025 to 5.9% in 2027.

The agency also signaled that interest payments could increase significantly, and Romania's vulnerability to exchange rate fluctuations remains a concern, considering that over 50% of public debt is denominated in foreign currency. The implementation of reforms from the Recovery and Resilience Mechanism is crucial, and delays in forming a stable government could affect their completion.

Romania has a 'Baa3' rating from Moody’s, with a 'negative' outlook from all three major rating agencies.