Romania’s finance, labor and European funds ministers will meet with the European Commission on Monday to try to convince officials in Brussels that the country’s growing budget deficit is the result of Bucharest’s efforts to help Ukraine in its military operations, the Financial Times reports. from news.ro.

The daily cites an interview of Prime Minister Marcel Čolak with a Bucharest correspondent, in which the Romanian Prime Minister assures that “under no circumstances” will the EU punish Romania for overcoming the deficit.

Romania had hoped to reduce its deficit to 4.4% of GDP, but the country’s central bank recently forecast a deficit of 7.5%. This value is so far above the 3% limit that the Commission can initiate disciplinary measures.

Bucharest has been under the so-called excessive deficit procedure even before the coronavirus pandemic, the Financial Times notes.

Prime Minister Marcel Çolaku told the FT that the budget deficit, which last year stood at 6.2% of the country’s gross domestic product, would definitely shrink in 2023, but he did not give a specific figure. “Three years ago, we had a very different economic situation compared to today,” Cholaku said. “Romania is now stable, has the second fastest growth rate in Europe, which comes from direct foreign investment. But the budget had to be reorganized to help Ukraine, especially in terms of grain supplies,” he explained, referring to the export corridor that Romania demanded from Ukraine replacement of grain supplies by the Black Sea.

“These were unforeseen expenses. We need an exception to the fiscal rules,” Prime Minister Čolaku said, adding that “under no circumstances” will the EU punish Romania for overspending.

He also said Bucharest would reorganize the budget and make savings, including administrative reform, which he insisted he could achieve despite the country facing four rounds of elections in 2024: European, local, presidential and parliamentary.

The Prime Minister’s spokesman said that Cholaku will travel to Brussels on Friday to discuss the funds Romania has to recover from the pandemic (PNRR) and the budget deficit, the Financial Times said.

CIOLACU SOLUTIONS TO HELP UKRAINE WITH GRAIN EXPORTS

Romania will double the capacity of its main port on the Black Sea and Danube within two months to help Ukraine transport its grain beyond Russia’s reach, Prime Minister Marcel Ciolacu said in an interview with the Financial Times. Romania’s plan will be implemented regardless of Russia’s attacks on Ukrainian ports on the other side of the Danube, on the border with Romania, Prime Minister Čolaku assured in an interview.

“In 2023, Ukraine will have approximately 40 million tons of grain for export,” Cholaku said. “To (facilitate) this, we have increased capacity both at the Port of Constanta and on the access roads to the Port of Constanta to make this possible. We mobilized everything we could,” said Cholaku.

Romania’s commitment to increase the shipping corridor by dredging the Danube and expanding port infrastructure comes after Russia reneged on a deal that allowed Ukrainian grain to reach world markets via the Black Sea. Moscow has also threatened commercial vessels leaving Ukrainian ports, leading exports to be diverted to the Danube, the FT reports.

“We have learned our lessons about Russia well,” said Čolaku. “We are not dependent on Russian energy carriers or resources. Our support for Ukraine is unconditional,” Cholaku assured in his first interview with the international press after becoming prime minister in June. Cholaku says Bucharest will not be intimidated by Moscow, and expressed confidence that his country’s NATO membership will keep Russia from any direct hostility. “Now there is no security threat for Romania,” he assessed.

Increasing the throughput capacity of the port of Constanta and other routes will allow doubling the export of Ukrainian grain to 4 million tons per month, he explained. “Investment continues in the Sulin Canal,” added Čolaku, referring to Romania’s main deep-water river route through the Danube Delta, the FT reported.

Despite repeated Russian attacks on Ukrainian grain silos in the Danube ports of Izmail and Reni, Cholaku says there are “solutions” – for example, allowing ships to transit at night from October and increasing cargo traffic to at least 14 ships a day. Doubling the size of the barges also “means that Ukraine will not have to use grain warehouses as much,” he said.

Naval industry experts told the FT that the plan was feasible.

In addition, Romania will open more road checkpoints and improve its railway infrastructure at stations on the border with Ukraine to speed up the movement of goods, Colacu added.

WHEN WILL THE TRAINING OF UKRAINIAN PILOTS BEGIN IN ROMANIA

Romania has been tight-lipped about military aid given to Kyiv, but Çolaku said his partners know Bucharest offers much more than humanitarian aid and logistical support. The country is also involved in the training of Ukrainian pilots for F-16 fighter jets, donated by NATO members, and is waiting for the necessary documents to begin their training.

“I expect to sign the protocols (for the pilots) in the next few days, this is the last hurdle,” he said. “The logistics are there, as far as we are concerned,” – assured Cholaku.

Russia’s war in Ukraine also posed security risks to Romania’s close ally, the Republic of Moldova, whose bid to join the EU Bucharest wholeheartedly supports, Ciolacu said. “Moldova is the most vulnerable state in Europe,” said the Prime Minister of Romania.

CRITICISM OF VICTOR ORBAN

Hungarian Prime Minister Viktor Orbán used his veto power in the EU and NATO to block various membership applications in an attempt to force Brussels to unblock frozen EU funds, Çolaku also said. “(Hungarians) are speculating on this,” he said, adding that it is wrong to politicize such strategic issues.

“There is a war between the dictator and the free world, which Europe cannot afford to lose,” said Marcel Cholaku, referring to Vladimir Putin.