| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2017) 803 final (22.11.17) |
| Publication Date | 05/12/2017 |
| Content Type | Policy-making |
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Background information: In July 2016, the Council recommended that Romania limit a deviation from its medium-term budgetary objective observed in 2016 by means of a 0.5% of GDP fiscal adjustment in 2017. However, in June 2017 it was determined that a significant observed deviation from the adjustment path toward that objective existed in Romania. On the same date the Council issued a recommendation for Romania to take the necessary measures to ensure that the nominal growth rate of net primary government expenditure did not exceed 3.3% in 2017, corresponding to an annual structural adjustment of 0.5% of GDP. Based on the Commission's Autumn 2017 economic forecast, the structural balance is set to deteriorate by 1.1% of GDP, reaching a deficit of 3.3% in 2017. This is the opposite of the recommended structural improvement of 0.5% of GDP relative to 2016. This led to the conclusion that the response of Romania to the Council Recommendation of 16 June 2017 had been insufficient. The European Commission issued on 22 November 2017 a proposal for a Recommendation establishing that Romania did not take sufficient action to address a previous Recommendation from June 2017 in the framework of its budgetary adjustment plans. It also adopted a proposal for another Recommendatiom with a view to correct the observed deviation: The Council of the European Union adopted both proposed Recommendations on 5 December 2017. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2017:803:FIN |
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| Countries / Regions | Europe, Romania |
