Romania Gets IMF, EU Nod to 2015 Budget With Smaller Deficit

Romania reached an agreement “in principle” with international lenders on next year’s budget after the government pledged to reduce the deficit, Prime Minister Victor Ponta said.

The cabinet plans to cut the fiscal shortfall to 1.8 percent of economic output, from an estimated 2.2 percent this year, without raising taxes as it will focus on improving revenue collection, Ponta said in Bucharest today. The gap may widen by 0.3 percent of gross domestic product if the European Union allows its second-poorest nation spend more on defense amid the conflict in neighboring Ukraine, he said.