Nazare: Romania is not going through a crisis, it is a necessary consequence of the paradigm shift

„This question is, in fact, how do we move from a scenario of convergence that is fading to a scenario of competitiveness and endurance,” the Minister of Finance began his speech.
Regarding the slowdown in economic growth and the technical recession in the second half of 2025, the minister said that this is a necessary step to change the economic growth model, which he said is based on consumption through an increase in the budget deficit.

„The growth rate of 0.6% recorded in 2025 and the technical recession in the second half of the year raised legitimate questions. But I say this as firmly as possible. What Romania is going through today is not a crisis. It is the anticipated and, I would say, necessary consequence of a deliberate paradigm shift. For too long, our growth model has been based on consumption, fueled by an ever-increasing external fiscal deficit. This fiscal model was an illusion of prosperity, while at the same time eroding our economic fundamentals. We have chosen to correct this direction, and the correction inevitably comes with transition costs,” the minister said.

Nazare also presented the results of the measures taken by the government led by Ilie Bolojan: „The consolidation effort implemented in 2025 and 2026 is perhaps the most ambitious in Romania’s post-accession history. These results, which we have achieved and which have been confirmed, validate the approach. In practical terms, at the end of 2025, the budget deficit will increase to 7.7% of GDP, significantly supported by 8.4%. In primary terms, this represents an adjustment of approximately 1.6 percentage points compared to the situation in 2024. We have reduced personnel expenditure by 0.6% of GDP, while protecting public investment. I emphasize this precisely to capture the philosophy of our entire approach. We have not sacrificed the future to manage the present. Looking ahead, we are confident that a further reduction in the deficit to around 6.2% of GDP by the end of this year is achievable. Of course, with a clear trajectory below 3% in the medium term.”

The minister presented the economic recovery package. „For the first time, Romania has a tool dedicated to attracting large-scale strategic investments of over €200 million through a combination of grants, tax credits, state guarantees, and, where appropriate, equity participation. It is an instrument that, in my view, we have lacked for years, and its absence has cost us real opportunities. The total budget until 2032 for all support programs amounts to €5 billion, and the money will be channeled into support schemes in seven priority sectors, including critical raw materials, new technologies, defense, research, and development,” Nazare said.