Source: European Parliament
Decisions on the role of the European Stability Mechanism (ESM) is of exclusive competence of the signatories of the ESM Treaty. The ESM is an intergovernmental organisation established by euro area Member States with the objective of enabling these countries to avoid and overcome financial crisis and to maintain long-term financial stability and prosperity.
Article 126 of the Treaty on the Functioning of the European Union establishes that Member States shall avoid excessive government deficits, and that the Commission monitors the developments of the fiscal situation and, in particular, compliance with the criteria established in the Treaty itself.
Romania has been subject to an excessive deficit procedure since 2020[1]. On 3 April 2020, the Council, acting upon a recommendation by the Commission, recommended that Romania correct its excessive deficit by 2022 at the latest.
Considering the crisis caused by the COVID-19 pandemic, on 18 June 2021, the deadline for correction was extended to 2024. On 26 July 2024, based on a Commission recommendation, the Council established that no effective action had been taken by Romania to correct its excessive deficit.
On 14 January 2025, acting upon a recommendation by the Commission, the Council recommended that Romania should correct its excessive deficit situation by 2030.
The Council also recommended to other seven Member States to correct their excessive deficit (Belgium, France, Hungary, Italy, Malta, Poland and Slovakia)[2].
The Commission will assess the action taken by Romania and the other seven Member States in response to the recommendations in spring 2025.
- [1] All documents related to the Excessive Deficit Procedure for Romania can be found at: https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/corrective-arm-excessive-deficit-procedure/excessive-deficit-procedures-overview/romania_en
- [2] https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/corrective-arm-excessive-deficit-procedure/excessive-deficit-procedures-overview_en