Romania's Government Debt Rises as Foreign Investment Plummets

Romania's general government debt rose to RON 1.19 trillion (EUR 227.5 billion) by the end of May 2026, pushing the debt-to-GDP ratio to 61.4%. The Government of Romania saw debt increase by RON 22.5 billion in a single month, driven by RON 8.2 billion in new bond issuances and a depreciation of the Romanian leu. This currency fluctuation added over EUR 2.5 billion to the debt, confirming warnings from Fitch Ratings and Moody's regarding the country's vulnerability to exchange rate volatility.

Economic instability extended to external accounts, with the National Bank of Romania reporting that foreign direct investment fell 82 percent during the first six months of 2026, dropping from EUR 3.719 billion to EUR 669 million. External debt rose to EUR 232.277 billion as of June 30, while the current account deficit widened to EUR 14.202 billion.

Sorin Grindeanu, chairman of the Social Democratic Party, criticized interim Prime Minister Ilie Bolojan's economic policies, claiming the investment collapse reflects a loss of international confidence. Grindeanu accused the government of deliberately hiding these economic figures from the public, stating that investors place capital only where risks are acceptable.