Leonardo Badea, First Deputy Governor of the National Bank of Romania: Macroeconomic and geo-strategic perspectives on the recalibration of Romania’s economic growth model in the context of the new normality

2026 is an important stage in the current structural transition path for our country. Although consumption is under pressure due to the necessary adjustments, accession to the OECD and the completion of investments financed by European funds (especially within the NRRP) significantly orient the economy towards greater efficiency and competitiveness. Unlike the pre-pandemic period, where fiscal policy was dominant in relation to various policies, the COVID-19 pandemic and then the war in Ukraine led to a major paradigm shift, which outlines a so-called new normality: fiscal policy was the one dominated in relation to the health crisis, respectively, in relation to the country’s defense policy. Unlike the past, where establishing a level of up to 2.5% of GDP for the defense budget represented a decision of opportunity, the new geo-strategic realities impose the level of 2.5% of GDP as a minimum threshold. In these circumstances, finding efficient sources of financing is an...