Group 1 - The Romanian government plans to implement a tax increase and salary freeze to reduce the budget deficit below 6% of GDP by 2026 [1] - As of January to May 2025, Romania's budget deficit is projected to be 3.4% of GDP, with an expected increase to 7% by the end of the year, which is higher than other EU member states [1]

Core Viewpoint - The U.S. Treasury Secretary, Janet Yellen, projects that the budget deficit will account for 6.5%-6.7% of GDP by 2025, indicating a significant fiscal challenge ahead for the government [1] Group 1 - The budget deficit forecast reflects the ongoing impact of policies from the Biden administration, which are perceived to be leading to a fiscal slowdown reminiscent of the previous Trump administration [1]