Romania's Budgetary Crisis: A New Government's Urgent Challenge

Romania Faces Budgetary Crisis as Government Formation Talks Begin Romania is facing a critical juncture as negotiations for a new government commence amid warnings of a disastrous budgetary situation. President Nicușor Dan initiated informal discussions with parliamentary parties on May 27th at Cotroceni Palace in Bucharest. The discussions are expected to be challenging, given the severe budget deficit. Daniel Dăianu, President of the Fiscal Council, described the deficit as "a gangrene" for the Romanian economy and society. He emphasized the need for increased tax revenue to address the crisis. Meanwhile, the National Liberal Party (PNL) has drawn a "red line" against a single tax rate, indicating potential friction in the coalition talks. Adrian Veștea, Secretary General of the PNL, highlighted the party's commitment to maintaining efficient measures. The upcoming weeks will be crucial in determining the composition and policies of the new government, and how it will tackle the urgent financial challenges facing the country.