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Budget deficit threatens transition to euro

Joi, 8 martie 2007, 0:00

Romania won't be able to achieve its medium term objectives, as assumed in the convergence program designed for the transition to the European currency, European Commission officials claim, in a study regarding Romania, Bulgaria and Latvia.
Although the convergence program is based on a plausible macro-economy scenario, the medium term objectives (2006-2009) are already questioned by the EC, where some believe that targets set for 2009 may be accomplished only in 2011.

The European Commission considers that the risks are somewhat balanced, but the situation may change during the following two years.

Romania's budgetary situation is not safe enough to prevent the deficit's growth over the reference limit of 3%, officials say.

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