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Official Journal of the European Union
19.5.2011
COUNCIL DECISION
of 12 May 2011
granting mutual assistance for Romania
(2011/289/EU)
THE COUNCIL OF THE EUROPEAN UNION,
the convergence programme and implementation of the
national reform programme and the regular review of
Having regard to the Treaty on the Functioning of the European
progress made by Romania in the context of the
Union, and in particular Article 143 thereof,
convergence report.
Having regard to the recommendation from the European
Commission made after consulting the Economic and
(5) While in the baseline scenario of the economic
Financial Committee,
programme, total gross financing needs until the first
quarter of 2013 are fully covered, and the government
Whereas:
continues to consolidate its access to market-based
financing, the unfinished reform agenda and substantial
(1) Romania
has
implemented a
substantial
reform
risks surrounding the baseline scenario support
programme since 2009. Public finances have been
Romania’s request for a financial assistance of a
brought back onto a more sustainable path and the
precautionary nature as a follow up to the assistance
government’s access to market-based financing has
granted under Council Decision 2009/458/EC of 6 May
improved markedly. As the fiscal adjustment continues
2009 granting mutual assistance for Romania (
and the exchange rate of Romania’s national currency

1 ).
(RON) with the currencies of major trading partners
(6) The
Romanian
authorities
have
requested
financial
has become more stable and as parent institutions of
assistance from the Union and other international
foreign-owned banks have kept their exposure to
financial institutions to support balance of payments
Romania, the banking sector has remained stable and
sustainability and to ensure that international currency
well capitalised, and Romania’s external deficit has been
reserves can be kept at a prudent level even in the case
contained.
of adverse economic developments.
(2) Continued
fiscal
consolidation
needs
to
be
pursued
in (7) Romania
remains
seriously
threatened
with
difficulties
as
order to further stabilise the debt to GDP ratio and to
regards its balance of payments, a threat which continues
ensure the long-run sustainability of public finances in a
to justify the granting of mutual assistance by the Union,
rapidly ageing society. Romania has begun to build a
yield curve, but for the time being the financing of the
HAS ADOPTED THIS DECISION:
budget deficit as well as of the refinancing of maturing
debt remain expensive, and Romania continues to rely on
Article 1
debt instruments with predominantly short maturities.
The Union shall continue to grant mutual assistance to
While the stability of the banking sector has been main
Romania, thereby continuing the assistance which has been
tained, the increase in impaired assets may continue
provided pursuant to Decision 2009/458/EC.
putting strain on the system.
Article 2
(3)
Against this background, it is crucial that the Romanian
authorities pursue sound and credible macroeconomic
This Decision shall take effect on the day of its notification.
policies to avoid any resurgence of major financial
market stress. A cornerstone of the economic
Article 3
programme remains the reduction of the fiscal deficit
in line with the Council recommendations to Romania
This Decision is addressed to the Member States.
adopted under the excessive deficit procedure. In order to
render the achievement of lower budgetary deficits
sustainable, Romania needs to continue the reform of
Done at Brussels, 12 May 2011.
its public financial management and control
environment.
For the Council
(4) The
Council
is
reviewing
on
a
regular
basis
the
economic
policies implemented by Romania, in particular in the
The President
context of the annual reviews of Romania’s update of
PINTR S.
( 1 ) OJ L 150, 13.6.2009, p. 6.

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