Fitch said Romania’s political crisis is putting planned deficit reduction at risk and could undermine the country’s investment-grade rating.
The warning follows the collapse of Prime Minister Ilie Bolojan’s government earlier this month, which Fitch said has clouded Romania’s medium-term fiscal strategy.
That uncertainty comes with Romania’s economy already in a fragile state, raising the stakes for any delay or weakening in budget consolidation.
A hit to investment-grade status would widen the fallout beyond domestic politics, potentially increasing borrowing pressure as Romania tries to stabilize its finances.
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