ECOFIN Urges Romanian Reforms

The EU’s Economic and Financial Affairs Council (ECOFIN) has urged Romania to significantly tighten its fiscal policy to stay on course with its excessive deficit procedure and to strengthen its external position. The Council also called for full implementation of the reforms and investments tied to the extended adjustment period granted earlier this year, CE Report quotes AGERPRES

In its latest report, ECOFIN recommended Romania increase defence and security spending while maintaining debt sustainability. To support long-term competitiveness and meet EU deadlines, Romania must speed up its Recovery and Resilience Plan (NRRP), including the REPowerEU chapter, and make better use of cohesion policy funds and EU instruments like InvestEU and STEP.

"Timely implementation of reforms and investments is essential to meet the 2026 deadline and support Romania's green and digital transitions," the report stressed. Romania was also advised to remove unachievable investments from the plan and ensure strong local and regional stakeholder involvement.

ECOFIN also highlighted the need to improve public administration, infrastructure project delivery, and the predictability of policymaking. Energy policy reforms were emphasized, including phasing out fossil fuel subsidies and ramping up renewable energy efforts.

Further recommendations included improving labor market inclusion, particularly for women and youth, and addressing skills shortages. The report also called for enhanced social protection and services, especially for vulnerable groups such as the Roma, while preserving fiscal sustainability.