According to Fitch Ratings, political instability in Romania could weigh on the country's efforts to reduce its budget deficit beyond 2026. This was reported by Qazaqyia.kz citing Reuters.
Fitch analysts believe that political instability could slow down the fiscal consolidation process and pose a threat to the country's economic stability. This could also affect Romania's ability to meet European Union requirements.
The agency notes that despite the Romanian government's efforts to reduce the deficit, the political crisis makes it difficult to implement long-term fiscal plans. This could also negatively impact the country's investment attractiveness.
According to Fitch's forecasts, if political instability persists, Romania's deficit reduction targets may be postponed, putting additional pressure on the country's financial stability.