The fiscal risk index reflects the vulnerabilities regarding current and anticipated funding needs for a state.
“The composite fiscal risk indicator includes information on the level of government debt, government debt-to-GDP falling due over a 24-month horizon, the implicit interest rate on sovereign debt (to capture the history of the country as a sovereign debt issuer) and the gap to the primary balance that would lead to debt converging to 60 % of GDP by 2020,” notes the “Tax reforms in EU Member States on 2011” report.
High fiscal risk indicates an immediate need for the enactment of substantial fiscal measures.
For Romania, the index reaches 0.54 points, while the EU average stands at 0.51 points. Greece shows the highest risk in the EU, with 1.02 points, followed by Italy, with 0.88 points.
In Central and Eastern Europe, Bulgaria has the lowest fiscal risk, 0.08 points, while Hungary has the highest, 0.82 points.