Pages: 64-80
Introduction. The economic shocks triggered by the outbreak and spread of the COVID – 19 pandemic prompted national governments to implement a series of large – scale expansionary fiscal measures to counteract the negative effects recorded globally on economic activity. This article aims to analyse the dynamics of fiscal and budgetary policies at the national level in Romania, as well as at the European and global levels, with a particular focus on the evolution of public debt and budget deficits, in the context of economic policies adopted in response to the health crisis. Accordingly, the study seeks to assess the effectiveness and sustainability of fiscal and budgetary measures adopted by national governments, through the lens of relevant macroeconomic indicators and the institutional constraints imposed by both national and European frameworks.
Aim of the study. In the case of Romania, the results of the analysis highlight a significant deterioration in fiscal balances, reflected in a sharp increase in public debt, both in absolute and relative terms, accompanied by a persistent high level of the budget deficit and current account deficit. In this context, the article examines the risks associated with Romania’s current fiscal trajectory, as well as the implications for financial stability and fiscal discipline in the medium and long term. The article concludes with a series of policy recommendations aimed at fiscal consolidation and the alignment of Romania with the objectives of the European Union’s Stability and Growth Pact.
