Page 121 - bne IntelliNews Southeastern Europe Outlook 2025

The ruling coalition formed by the Social Democrats (PSD) and Liberals (PNL) will predictably remain the core of the next ruling coalition, but its commitment for deep reforms required by sustainable fiscal consolidation is questioned by the presidential elections deferred for 2025.
Fitch Ratings announced on December 17 it has revised the outlook on Romania's long-term forex Issuer Default Rating (IDR) to negative from stable, while affirming the IDR at BBB-.
The decision was made after the presidential election process was annulled by the Constitutional Court after the surprise first round victory of the ultranationalist candidate Calin Georgescu due to alleged foreign/Russian election interference. The constitutional court also extended the mandate of the current president, Klaus Iohannis, originally due to end on December 21, until a new president is elected. Fitch expects Romania's general government deficit will increase to 8.2% of GDP in 2024, above its previous August review forecast of 7.2%.
6.10 Budget and Debt – Serbia
Serbia's 2025 budget focuses on revenue growth and infrastructure investments.
Total revenues are expected to reach RSD2,346.2bn (€20bn), reflecting an increase of RSD172bn compared to the revised 2024 budget. Expenditures are set at RSD2,660.2bn (€22.7bn), an increase of RSD224bn. A significant allocation of RSD762.9bn (7.4% of GDP) is dedicated to capital investments, particularly infrastructure projects tied to Serbia’s preparation for Expo 2027.
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