Romania's Consolidated Budget Deficit Widens to 1.18% of GDP in H1

Romania's consolidated budget deficit widened to 1.18% of the projected gross domestic product (GDP) in the first six months of the year to RON 5.2 billion (EUR 1.5 billion), from 0.19% of GDP in the respective period last year, Reporter.gr informs quoting the Romanian Finance Ministry.

The European Commission said in April it was concerned about Romania's growing budget deficit and its volatility since the country joined the EU in January 2007.

The Commission sees Romania's 2008 budget deficit at 2.9% of GDP and expects it to grow to 3.7% of GDP next year. In March, Romania lowered the 2008 budget deficit target from 2.7% to 2.3% of GDP.

In order for the country to enter the euroland, budget deficit should meet Maastricht criteria and stay below 3%. The EU member must meet the Maastricht criteria on inflation, public debt, budget deficit, currency stability and interest rates to qualify for adoption of the euro.