This financing will help Romanians see new opportunities emerge, from more accessible finance for small businesses to cleaner, more competitive industries and efficient energy.
“In 2024, fiscal and current account deficits as a share of GDP were the widest in the EU. The government has responded with a robust reform program to put its public finances on a sustainable footing while laying the groundwork for stronger, more inclusive growth through a sound fiscal consolidation program. This loan will support the continued implementation of the government’s reform agenda,” the World Bank said in a recent press statement, noting that the loan comes at a critical moment for the country’s economy.
The loan is structured around two pillars, with the first supporting fiscal consolidation to achieve a deficit target of 3% of GDP by the end of 2030 and the second promoting private sector–led growth and job creation.
In February 2026, Romania’s government approved two emergency decrees introducing public administration layoffs and spending cuts alongside a package of fiscal and support schemes aimed at stimulating economic recovery. The decrees followed earlier government efforts for fiscal optimization which included austerity measures such as higher VAT rates and excise duties, an increase in the number of contributors to the public healthcare system, and higher taxes for banks.
Romania’s consolidated budget was in deficit amounting to 14.23 billion lei ($3.2 billion/2.79 billion euro) in the first two months of 2026, roughly half the 30.24 billion lei gap recorded in the same period last year. Last week, the parliament approved the 2026 state budget, which targets a deficit equivalent to 6.2% of GDP, down from last year’s 7.65%.