Luca Niculescu, on meeting the budget deficit target: “You know how fragile the line we are on is” / “Obviously, introducing new taxes is nobody’s wish”

Prime Minister Luca Niculescu reaffirmed, at the end of the first meeting of the new Government, that Romania must meet its committed budget deficit target. The statement was made in the context of the new Executive setting its economic priorities and measures to keep public finances within the agreed limits.

“The deficit is something we must stay within; it is part of the international agreements in which we participate, the commitments we have undertaken, and you know how fragile the line we are walking is. We have successfully passed the reviews by three rating agencies, but by a very narrow margin in the middle of this year, and we will have their visit again at the beginning of next year,” Luca Niculescu stated.

The head of Government provided no details regarding a possible pension indexation and did not specify whether the Executive is considering introducing new taxes. However, he said that protecting vulnerable people would be a priority.

“Obviously, no one wants to introduce new taxes, and we will do everything we can to ensure that the most vulnerable, in any case, are protected,” Luca Niculescu stated.

The Prime Minister also did not indicate the schedule or formula for pension indexation. The statements come after the new Government was sworn in and ahead of decisions regarding fiscal policy, budgetary spending, and the measures needed to achieve Romania’s committed deficit target. The avalanche of questions regarding pensions and taxes thus remains without a concrete answer from the Executive.