The Foreign Investors Council warns that Romania's ongoing political crisis—triggered by the PSD's withdrawal from the governing coalition—threatens economic stability and investor confidence. With 53% of surveyed companies reporting deteriorated legislative predictability and historical FDI sensitivity to policy uncertainty, prolonged instability could reduce annual foreign direct investment inflows from the recent EUR 6-7 billion average, particularly given elevated public debt and regional competitive pressures.
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View all signals →Romania’s Fiscal Council president Daniel Dăianu has dismissed claims that the country is facing an “economic disaster” following the latest macroeconomic data published by the National Institute of Statistics (INS), arguing instead that current trends reflect the cost of fiscal adjustment rather than a structural collapse. Speaking to Digi24 on May 14, Dăianu said it would be inappropriate to interpret recent GDP contraction and inflation data in alarmist terms, amid rising political tensions over the government’s austerity-oriented fiscal stance. “We do not want to pay it, but we have to pay it to reduce the budget deficit,” he said, referring to efforts to bring down a deficit he said exceeded 9% of GDP in 2024.