Romanian EU lawmaker Daniel Daianu said that the decision has a warning role so far, but that Romania must undergo a series of administrative reforms which will be monitored by the EC more carefully that the exact figures.
“The procedure initiated today is something entirely new. Its purpose is not sanctioning countries, but warn them that they must narrow deficits as economic growth is resumed. In Romania’s case, the procedure would have been initiated anyway, even in the absence of the economic crisis,” Daianu told Business Standard.
He added that Romania will be requested to meet the three percent of GDP criteria in 2011, but the country should not target this figure alone. The EU will monitor Romania to see if it implements reforms in public administration and in social security.
“Romania had a pro-cyclical budget policy in 2005-2008 when demand skyrocketed, and global deficit rose to 5.4 percent of GDP from 1.2 percent, despite the average GDP real growth rate of 6.5 percent,” the EC indicated.
