EU calls on Romania to rein in deficit
(BRUSSELS) - The European Commission urged Romania on Friday to step up efforts to improve its public finances over concern that Bucharest's budget deficit will breach an EU limit next year.
The European Union's executive arm, which polices public finances in the bloc, warned that Romania's budget deficit was set to rise from an estimated 2.9 percent of output this year to 3.7 percent in 2009.
That would bring the shortfall between revenues and spending over an EU-limit of 3.0 percent, enshrined in the 27-nation's Stability and Growth Pact.
"Romania needs a comprehensive strategy to accelerate structural reforms and fiscal consolidation," EU Economic and Monetary Affairs Commissioner Joaquin Almunia said.
"In particular, a credible medium-term expenditure planning and a multi-annual budget are urgently needed.
"Coupled with structural reforms, budgetary consolidation will help address the overheating of the economy and promote a more balanced catching up process with the rest of the EU," he added.
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