Bolojan: Three factors will influence rating agencies’ decisions regarding Romania

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The interim prime minister noted that Romania is in a critical period for credit rating agency assessments, decisions that influence investor confidence and the interest rates at which the government borrows. According to him, three factors are essential in these assessments: budget performance to date, political stability, and the outlook for 2027–2028.

Regarding the budgetary situation, Bolojan stated that the measures taken by the government in recent months have begun to yield results.

“Budget execution for the first half of the year confirmed that the government did what was necessary and right. Revenue collection has improved, spending is lower, and the deficit is declining. We have been honest with the Romanian people; we have begun to put the country’s finances in order and limit waste,” Bolojan posted on Facebook.

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He argued that the pace of reforms had been hampered by political gridlock and referred to the measures needed to access European funds.

„De facto PSD–AUR alliance”

“We could have done more if the reforms hadn’t been blocked from within the former governing coalition itself. We worked hard to catch up on all the backlog that had accumulated in recent years in the PNRR program, so as not to lose significant amounts of money,” Bolojan stated.

The interim prime minister also criticized the amendments made to certain bills in Parliament.

“Some of these backlogs were voted on in Parliament over the past two weeks, but, unfortunately, the de facto PSD–AUR alliance undermined them with amendments that could result in penalties and raise concerns about unconstitutionality. If populism were to take a break and the panic-mongering lies were to stop, the unified pay scale law could be passed within two weeks at most,” said Bolojan.

Referring to the political situation, Ilie Bolojan stated that Romania needs an executive branch with full powers and a predictable governing program to bolster market confidence.

“A stable parliamentary majority, a serious government, and a predictable, realistic, and responsible governing program lend greater credibility to public policies. Here, the government has been toppled, and we are in a state of political uncertainty because the de facto PSD–AUR alliance acted solely out of political and patronage interests. They were not concerned with the consequences for the country.”

“We need a government with full powers”

Bolojan argued that the future government must continue with reform measures.

“We need a government with full powers, one that is committed to staying the difficult course. A government that does what is right, not just what looks good. One that reduces tax evasion, cuts government spending, and continues administrative reform. It must fight the network of privileged elites who oppose any return to normalcy in the areas from which they derive their rents. Only then will the state be more efficient, the economy have a sound foundation, and foreign markets have confidence in us,” the interim prime minister stated.

Finally, Bolojan warned that the approaching 2028 elections could bring renewed pressure to abandon fiscal discipline.

“The 2028 elections are approaching, and with them comes a growing risk of a relapse into populism and waste. It has happened before—we know this, and so do those who evaluate us. And the abundance of statements heralding the end of fiscal discipline is a wake-up call,” he said.

The interim prime minister added that the budget deficit cannot be treated as a problem without consequences.

“Those who view the deficit as an abstract number with no real consequences are lying. It’s as if they were telling you that you can spend as much as you want, no matter how much you earn, and without having to pay the money back. The false expectations created irresponsibly, with an eye on the polls, must stop. If we do not continue with cost-cutting measures this year, we may find ourselves back in the dead end we reached after the budgetary excesses of 2024. When Romania’s fate is at stake, personal, party, and electoral interests must no longer exist. There is only the country’s interest,” Bolojan concluded.