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Government approves Romania's signing European Stability Treaty

The Government on Tuesday approved Romania's signing the European Stability Treaty, Government's spokesman Dan Suciu announced. According to the Government, the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union establishes 0.5 percent as the limit of the structural budget deficit and in case the level of the public debt is significantly below 60 percent and there are no risks for the long-term sustainability of public finance, this structural deficit may amount to about 1 percent of the GDP. The maximum cyclical budget deficit plus the structural one will be up to the limit of 3 percent of the GDP.

'In case there are deviations from these levels, there is a directly activating mechanism by which the European Commission notifies the Court of Justice of the European Union and then, depending on the ruling of this court, there can be a financial sanction amounting to 0.1 percent of the GDP of the country in question at the most,' said Dan Suciu.

Following negotiations, Romania got the upper hand in introducing into the Treaty the provision that will make it possible for the heads of state and government of all EU member states to take part in the high-level meetings of the Eurozone.

'It was one of the steps Romania insisted very much on, for it to be a permanent part of the process, for it to be consulted and capable of learning things in due time, of participating in these debates connected to the fiscal sustainability and coherence of the Eurozone,' Dan Suciu added.