Joint statement by the Presidency of the Ecofin Council and the Commission on providing medium-term financial assistance to Romania

Prague, March 11th, 2009

In view of the adverse effects of the global financial turmoil on the economic and financial situation in Romania, the Council Presidency and the Commission express the European Union's readiness to support Romania in avoiding risks of increasing market pressures and in achieving the orderly unwinding of imbalances.

The Commission is in close consultations with the Romanian authorities and the IMF to develop a joint response to bolstering Romania's macroeconomic situation and underpin balance-of-payments sustainability, in the form of a pro-active, insurance-based multilateral financing package.

The financial assistance is contingent upon a strong commitment by the Romanian authorities to implement a supportive policy programme. There is a clear need to mobilise all stakeholders and policy tools behind the goals of continuing to ensure macroeconomic and financial stability, as well as fiscal consolidation and sustainability. Implementation of the policy conditions to be agreed in the context of the EU facility will be monitored by the Commission in collaboration with the Economic and Financial Committee.

Background

The assistance facility created in Council Regulation 332/2002 implements the mechanism foreseen by the Article 119 of the Treaty, whereby the EU can grant mutual assistance to a Member State outside the euro area "in difficulties or seriously threatened with difficulties as regards its balance of payments either as a result of an overall disequilibrium in its balance of payments or as a result of the type of currency at its disposal".

Radka Kohutová, Spokeswoman of the Ministry of Finance