Romania coalition reaches deal on 2026 budget

Romania’s ruling coalition has reached a compromise on the 2026 budget, easing tensions that had threatened the government’s stability, Prime Minister Ilie Bolojan said.

The agreement allows the government to fund welfare payments sought by the Social Democrats without increasing the budget deficit, which will remain at 6.2% of economic output, News.Az reports, citing Reuters.

To achieve this, the coalition plans to delay court-ordered payouts to judges and prosecutors, redirecting those funds toward one-off support for pensioners. The final vote on the budget has been postponed to Friday as lawmakers finalize details.

The deal comes after growing pressure within the four-party, pro-European Union coalition, as disagreements over spending raised concerns about a potential political crisis.

Meanwhile, central bank governor Mugur Isarescu warned that failing to reduce the deficit could damage Romania’s credibility, credit ratings, and access to global markets.

Romania has already introduced tax increases and spending cuts to address the European Union’s highest budget deficit. However, these measures have contributed to rising inflation and economic slowdown, increasing pressure on policymakers.

News.Az 

By Aysel Mammadzada