Romanian PM vows deeper spending cuts to avoid default risk, warns of 'bad outcome' if measures not implemented.

Romanian Premier Ilie Bolojan warns of a default risk unless his government implements deep spending cuts. He believes the next six months are crucial for imposing radical austerity measures, despite growing public discontent and tensions within the ruling coalition. The government aims to trim the budget deficit to below 6% of GDP next year, and the EU will review Romania's plan in October. Credit assessors are also watching closely, with S&P Global Ratings having confirmed the country's lowest investment grade with a negative outlook in late July.