Nazare, after meeting with S&P: budget execution, the main argument for maintaining the rating

The Finance Minister, Alexandru Nazare, met on Thursday with representatives of the S&P Global Ratings agency as part of Romania's sovereign credit rating review process. According to the official, budget execution and the continuation of fiscal consolidation are the main arguments put forward by the Romanian side. The agency's decision is expected to be announced on 2 October.

In a Facebook post, Nazare noted that the meeting was also attended by representatives of the Ministry of Finance's technical team, who presented the current state of public finances, the results of deficit-reduction measures, and the economic outlook for the period ahead.

„Another round of discussions at the Finance Ministry today with S&P experts, as part of the country rating review procedure. Together with colleagues from the ministry's technical team, I presented the up-to-date developments in public finances, the results of fiscal consolidation, and Romania's outlook for the period ahead. The figures show that the adjustment is not merely one of deficit reduction, but one that is beginning to be reflected in the structure of the budget. We have demonstrated that we can reduce the deficit and keep expenditure under control, whilst protecting investments funded by European funds and directing more resources towards projects with high economic impact. The results of recent months continue to confirm the adjustment begun last year and support the arguments we presented today regarding the achievement of the targets we have committed to for this year," the minister stated.

The meeting also covered topics such as political uncertainties, external pressures, and rising financing costs. The strategy presented by the ministry focuses on limiting expenditure, prioritising investment, and making efficient use of European funds.

„We cannot turn progress into premature complacency"

Nazare emphasised that maintaining the confidence of external partners depends not only on the results achieved so far, but also on the continuation of reforms and the honouring of commitments made.

„The message I conveyed is simple: Romania must continue what it has started. We cannot allow the progress made in recent months to become a pretext for premature easing of fiscal policy. External credibility depends both on the results achieved and on our capacity for continuity — in terms of both reforms and honouring our commitments. Maintaining investment-grade status remains the primary objective for this period. Romania's financing conditions, investor confidence, and the resources we can direct towards development — rather than consuming them on interest payments — all depend on this. We are at an important juncture in this review and we have stronger arguments than we did a few months ago. But an investment-grade rating is not defended through declarations; it is defended through execution, predictability, and consistency in fiscal decision-making," the minister stated.

Among the priorities for the period ahead, Nazare mentioned the continuation of fiscal consolidation, the preparation of a "credible and realistic" budget for 2027, limiting the growth of rigid expenditure, protecting investments funded by European funds, and continuing structural measures aimed at reducing the deficit over the medium term.

„Our ambition is not only to reduce the deficit, but also to build a more competitive economy, based on investment, production, and private capital, with sound public finances and lower financing costs over the long term," the minister added.

S&P currently maintains Romania's sovereign rating at „BBB-/A-3" with a negative outlook — the lowest rung of the investment-grade category. A potential one-notch downgrade would place Romania in the speculative category, commonly known as „junk".