Romania yet to unveil 2025 budget draft
Parliamentary election due on Sunday
EU membership and funds play key role in stability
Antiincumbent backlash could complicate deficit cuts
BUDAPEST, Nov 26 Reuters Financial markets might run out of patience with Romania39;s high fiscal deficit, the country39;s fiscal watchdog warned on Tuesday, saying Bucharest39;s sevenyear plan to narrow the gap risked being too slow for some investors.
The prospect of presidential and parliamentary elections in central Europe39;s secondlargest economy in November and December has triggered a spending surge that is expected to push Romania39;s 2024 budget deficit to 8 of gross domestic product.
Romania submitted a plan to Brussels in late October to cut its deficit below the EU39;s 3 of GDP ceiling within seven years, with ratings agencies and analysts expecting tax hikes.
It is not mission impossible, but it is going to be very hard, the chairman of Romania39;s Fiscal Council, Daniel Daianu, told a conference in Budapest about Romania39;s fiscal plans.
Seven years seems to be reasonable, but I don39;t know about the patience of markets, he later told a panel discussion. We are being pushed by financial markets unless we are prudent. If we make big mistakes we are going to get punished.
Romania has yet to unveil a 2025 budget and analysts say the formation of a new government and policy could be complicated by the shock outcome of last Sunday39;s presidential election.
That put a…