Bolojan, after the European Commission reduced Romania’s economic growth forecast

Interim Prime Minister Ilie Bolojan held a press conference in Focsani on Friday, during which he was asked what the consequences would be in the context in which the European Commission reduced Romania’s economic growth forecast to 0.1%.

He stated that such a reduction of the forecast was expected in the context of the war in Ukraine, the increase in fuel prices due to the war in the Middle East, but also of global trade tensions. He emphasized that the slowdown of the European economy will also have direct effects on Romania, given the close connection between the national economy and that of the European Union.

„It was obvious that what happened from the end of February until today, through the Gulf War, would have some effects on economies around the world. The increase in fuel prices, as you have seen and as we continue to see, is a factor that does not help economic development and has caused all economies to slow down, including our economy, unfortunately also contributing to the increase in inflation (…) Also, what is still happening related to the war in Ukraine, related to tariff problems between large economic blocs, is not likely to drive economic growth. Our country’s economy is linked to that of the European Union”, said Ilie Bolojan during the press conference.

According to him, the Romanian economy is also facing the effects of budgetary policies in recent years.

„We don’t have to hide, it’s a reset of the Romanian economy. For years we have operated with very large deficits, so we have basically thrown money into the market, and although we have thrown billions into the market, economic growth in 2023, 2024, 2025 was not commensurate with the money thrown into the market, because it was mainly money spent on consumption,” said Bolojan.

What should be the priorities in the next period

The interim prime minister stressed that the priorities of future governments must be maintaining budget balances, absorbing European funds and reducing energy costs to increase the competitiveness of Romanian companies.

„What we need to do in the coming period (…) is to maintain our budgetary balances. This is very important for our country’s rating to be predictable, for investor confidence to remain at a reasonable level. We need to continue absorbing European funds, because the investment budget this year is 8% of GDP,” explained Bolojan.

„It is also very important to work on the energy price component. The energy price is not only a social component for families, an additional cost, but also has an important component on competitiveness and if we want Romanian companies to be competitive or more competitive, it is very important that these fixed costs of the energy component are reduced in the coming years,” added the interim prime minister.

At the same time, he drew attention to the labor shortage in Romania.

„Whether we like it or not, we are in penultimate place in Europe in terms of the number of citizens in the labor market from the active population of Romania. And without more people in the labor market, it is difficult to assume that we will have an economy with higher productivity, which covers all needs, with more taxpayers. These are some basic elements that, if taken into account, these indicators will be corrected more quickly in the coming period,” concluded Bolojan.

European Commission estimates growth of only 0.1%, high inflation and rising public debt
On Thursday, the European Commission estimated that Romania’s economy will grow by only 0.1% in 2026, amid high inflation, rising energy prices and measures to reduce the budget deficit.

“Economic confidence, in particular consumer confidence, has deteriorated further since the beginning of 2026, with high-frequency indicators showing a significant decline in retail sales, industrial production and domestic tourism,” the European Commission noted.

However, the Commission also points out that fiscal consolidation efforts and high inflation, fuelled by rising energy prices, will significantly reduce domestic consumption.

Inflation is projected at 7% in 2026, up from 6.8% in 2025, before falling to 3.7% in 2027.

The unemployment rate is expected to rise moderately, from 6.1% in 2025 to 6.3% in 2026, before falling to 5.9% in 2027.

Debt is also expected to continue to rise, from 59.3% of GDP in 2025 to 61.6% in 2026 and 63.4% in 2027.