Prime Minister Marcel Çolaku said on Wednesday after a meeting with IMF experts that there would be no need for new taxes and new measures if the fiscal measures plan passed by parliament were implemented. He claims that the biggest risk, namely the payment of a fine of 0.5% of GDP if Romania does not meet the 4.4% deficit target, has been completely overcome after technical discussions held with the European Executive and the President of the European Commission.

• “If we stick to the plan we’ve started, I don’t think other measures will be necessary. The excitement of the war is over, there is already a lot of direct investment, and I firmly believe that Romania will once again have the second economic growth in Europe, something that will be even better anchored macroeconomically.
• I want to accelerate the digitization of ANAF, next week we will also have a discussion, I will also present it to the President of Romania, because it is a strategic task for Romania and there will be no need for new taxes.
• September is not a fantastic month for collecting. We’ve announced the apocalypse enough to announce it further, because it hasn’t come. At the moment, if we stick to what we promised and we continue to reorganize the ministries as we promised, everything will be sustainable.” Prime Minister Marcel Cholaku said on Wednesday, answering questions about negotiations with the IMF.

He said the IMF’s recommendations are somewhat similar to those of the World Bank and the European Commission’s country report, but that “we really need attention at the end of this year and next year so that spending doesn’t get out of control.”

Answering the question whether there is a threat of losing European funds due to failure to achieve the projected deficit target for this year of 4.4% of GDP, Çolaku said that the biggest threat has been completely overcome.

• “The biggest danger was paying a penalty of 0.5% of GDP in the first place, because there was a possibility that we would not fulfill the 4.4% of GDP deficit agreement taken by the state.
• This was completely overcome after discussions with the European Commission, the technician and the President (not the President of the European Commission). So, from my point of view, we are moving towards a normal life. I know very well, and after meeting with the IMF, and with the technician from the Commission, and with the President of the Commission, and with the Minister of Finance, and with experts from the BNR, what I should do after the promulgation of the law “, he said.

Head of the IMF mission in Romania: Many other programs are needed to improve efficiency, income in general / 3% GDP deficit will not be achieved in 2024

The government’s package of fiscal measures is designed to reduce the budget deficit, but many other programs are needed to improve efficiency and revenues, the head of the IMF’s mission in Romania, Ian Kees Martein, said on Wednesday.

• “Bank and corporate sales taxes place an unfair burden on low-profit companies and can reduce financial intermediation.
• The fiscal package is good, but needs to be improved.
• The new fiscal package will improve the situation by 2024 in terms of controlling the budget deficit at the level of 3% of GDP. In 2024, the goal will not be achieved.” he declared.

The IMF expects the budget deficit to fall from 6% this year to 5% in 2024. The IMF forecasts economic growth of 2.4% this year and 3.7% in 2024, according to the institution’s latest report. Note that the revision was made downwards: in October, it predicted 3.1% for 2023.

As for inflation, he also sees it in the double digits, namely 10.5% (this is the annual average) and 5.8% in 2024.

At the end of this year, inflation is expected to be 7.5%.

The projected current account deficit is 7.9% in 2023 and 7.7% in 2024.

The National Strategy and Forecast Commission expects the economy to grow by 2.8% this year.

In its January report, the World Bank forecast 4.6% in 2022 and 2.6% in 2023.