Romania must introduce additional spending controls and a programme to reduce public debt after the country's debt ratio exceeded 60% of GDP, Acting Finance Minister Alexandru Nazare said on August 19, citing the provisions of Fiscal Responsibility Law No. 69/2010, according to Economica.net.

According to the latest Eurostat data, Romania's general government debt reached 60.1% of GDP at the end of the first quarter of 2026. The Finance Ministry estimates that the ratio will rise to 61.8% at the end of 2026, 63.3% in 2027 and 63.9% in 2028 before beginning to decline.

Romania has been under the European Union's Excessive Deficit Procedure since 2020 and is subject to a Council recommendation adopted on July 8, 2025. The recommendation limits the annual growth of net expenditure to 2.6% in 2026, 4.6% in 2027, 4.4% in 2028, 4.2% in 2029 and 4.0% in 2030. The national Fiscal Responsibility Law adds more constraints.

Nazare told the government that crossing the 60% debt threshold activates additional restrictions under national legislation, including limits on measures that would increase aggregate personnel and social assistance expenditure.

"What this means in concrete terms: Romania has a very clear limit on new budget commitments. As long as the debt remains above 60% of GDP, the Government cannot approve measures that increase total personnel expenses or total social assistance expenses," Nazare said, according to News.ro.

He said any measure with a budgetary impact must be supported by calculations and remain within the fiscal framework and expenditure ceilings established by the Fiscal-Budgetary Strategy, including an assessment of immediate costs, annualised effects and medium-term risks.

The requirements will also apply to the new public-sector wage law, which the government is currently preparing. "This approach must constitute the reference framework, including for the finalisation of the new payroll law, but also for other initiatives with an impact on permanent expenses," Nazare said.

Under Law No. 69/2010, the government must initiate a programme aimed at gradually reducing public debt below 60% of GDP. Corrective measures and deficit-reduction measures must be adopted through legislation no later than the semester following the period in which the threshold is exceeded.

The Finance Ministry is also required to notify the government and present an official report once the threshold is confirmed by Eurostat.