The European Commission calls for a careful analysis of the economic situation of 12 EU countries, including Romania

The European Commission requested, this Wednesday, a close monitoring of the economic situation of 12 member states of the European Union, including Romania, in the context of the observation of important macroeconomic imbalances.

The European Commission released the autumn economic policy package on Wednesday. In the Alert Mechanism Report (RMA), accessed by MEDIAFAX, the European Commission recommends in-depth analysis of the situation in 12 EU Member States, “to identify and assess the seriousness of possible macroeconomic imbalances”. The countries affected are: Romania, Croatia, Republic of Cyprus, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain and Sweden. “These countries have already been identified with imbalances or excessive imbalances in February 2020,” the European Commission said, according to a document published on the institution’s website.

“The current crisis has exacerbated certain existing challenges and poses new risks. This highlights the need to make the best use of EU support measures and to ensure that investment and reforms in the euro zone work to address imbalances.” the Commission said. EU. The EU executive points out that while current financial statements appear stable despite the impact of the coronavirus crisis, the trend to reduce external debt has stopped. In addition, the debts of companies and individuals are increasing in a context of falling GDP.

“Romania has been subject to the excessive deficit procedure since April 2020 due to the violation of the maximum deficit limit established by the EU Treaty in 2019. The upward trend in public deficits has been generated by the expansionary measures adopted before EU Council recommendation under Article 126 (7) of the EU Treaty is that Romania stop the excessive deficit by 2022. The Romanian authorities presented in September the report on the actions taken in response to the recommendation The report indicates the deterioration of public finances in 2020 due to the coronavirus pandemic, “says the European Commission.

“In the 2020 forecast, the European Commission estimates that Romania’s deficit will exceed 10% of GDP in 2020 and will continue to increase in the coming years,” the report said.

“In the context of continuing uncertainty due to the coronavirus pandemic, the European Commission considers that no further decision should be taken at this time in the excessive deficit procedure in Romania. The European Commission will review Romania’s budgetary situation in the spring 2021 and the necessary measures will be taken under the excessive deficit procedure at that time, if necessary, “the report said.