Romania's PM says investment will contribute to managing the country's budgetary deficits

Prime Minister Calin Popescu Tariceanu stated that the Cabinet can manage Romania's budgetary deficits. The PM was replying in response to the E.U.'s warning that the budgetary deficit might exceed 3% of the GDP in the future.

Tariceanu wished to reassure Joaquin Almunia, the EC commissioner for economic and monetary affairs that it is in Romania's interest to develop as much as possible, in order to cover all the economic gaps.

Tariceanu noted he does not exclude the possibility of a budget rectification, with the sole purpose to maintain control over expenditures. According to a long term evaluation of Romania's fiscal plans, the E.U. said it is less likely for the country to have a balanced budget until 2011.

The budget approved by the Parliament refers to a 2.8% budget deficit for this year. The EU own analysis indicates that Romania's budget deficit will widen to 3.2% this year.