Economy and Finance EU ministers council (ECOFIN) are debating on Monday in Brussels the measures adopted by several states - Romania included - to correct excessive budget deficits.
The council will decide whether or not they will support Romania's proposal to extend for a year the deadline Romania requested in order to bring the budget deficits below 3% of the GDP, according to the European Affairs Department (DAE). The new deadline Romania needs is 2012. Romanian Finance minister Sebastian Vladescu is also taking part in the meeting.
The EC representative Fabienne Ilzkovitz declared last month that the possibility for Romania to get more time to bring the budget deficit below 3% of the GDP was being analysed, but the decision had to be met by ECOFIN.
The department recalls that in July 2009, the council approved a Commission proposal to start the procedures for excessive deficit (PED) for Romania, with the country having a deficit higher than 3% of the GDP in 2008 and recommended the deficit to be brought below 3% until 2011 at the latest. The Council decided that January 7 2010 was the last term for taking effective measures.
"Romania reduced salary spending in the public sector and lowered public spending for goods, and services in 2009, according to the recommendation. The budget for 201o also includes a package of measures addressing spending cuts by approximately 2% of the GDP and increasing incomes by about 0.5% of the GDP. Additionally, a fiscal responsibility law which has been introduced in the compulsory fiscal framework on medium-term has been sent to the Parliament for approval. Taking into account these different measures, one can conclude that Romania has taken effective measures according to the recommendation", a DAE communiqué shows.
The Stability and Economic Growth Pact says that in the case in which recommendations have been respected but the economic situation is significantly deteriorating and beyond of the country's control, the Council can revise the recommendations and the deadline for the correction of excessive deficit.