Finance Minister Alexandru Nazare held another discussion with representatives of the rating agency Moody's, presenting them with the current state of public finances, the evolution of budget execution, and the challenges for 2027, emphasizing that the progress made this year must be sustained through a credible budget for 2027 and predictability for the years ahead.

'The progress made in 2026 provides us with a solid foundation. The message conveyed to Moody's is that this course must be maintained through a credible budget for 2027 and predictability for the years ahead. Last night, I held further discussions with Moody's representatives, explaining the current state of public finances, the trajectory of budget execution, and the challenges facing us for 2027. The agency's commentary published today should be read in full. This is not a rating action; Moody's explicitly notes that Romania's fiscal adjustment has significantly exceeded expectations this year, with the cash deficit dropping to 2.9% of GDP over the first eight months, down from 4.5% during the same period last year. Budget execution over these eight months remains our key argument in discussions with rating agencies. At the same time, Moody's warns that the lack of a government majority and more difficult financing conditions could put pressure on continued consolidation beyond 2026,' Alexandru Nazare wrote on Facebook.

He noted that agencies, investors, and the European Commission are already assessing Romania's capacity to continue the adjustment process in 2027 and 2028.

'We need the 2027 budget to be drafted and adopted on time, based on a credible and predictable fiscal plan. Political uncertainty has real economic and financial consequences. Moody's indicates that political developments in the coming weeks will be crucial for assessing the sustainability of the adjustment, and it views the adoption of the 2027 budget by year-end as increasingly difficult without sufficient political support. Last night, I also explained how a political timeline that delays the drafting and execution of next year's budget amplifies the risks monitored by creditors and rating agencies. We cannot control the decisions of rating agencies or developments in international markets. However, we can control our own data, fiscal-budgetary decisions, and the credibility Romania builds through consistency. We have regained much of the lost confidence. The next step is to demonstrate that the progress made in 2026 is not temporary and that Romania can continue fiscal consolidation while protecting investments and creating the conditions to lower financing costs and revitalize the economy,' Alexandru Nazare added. AGERPRES(RO - writing by: George Banciulea; EN - writing by: Bogdan Gabaroi)

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