Low public sector debt burden. Strong consensus in favor of EU membership, effectively locking in structural reform. High growth potential. Minimal budgetary flexibility due to large parastatal losses. Weak external liquidity, as external imbalances will persist over the foreseeable future. Weak governance indicators. The ratings on Romania reflect the low government debt burden, good growth prospects, and the commitment of the new centrist government to step up Romania's economic and institutional reforms, which will in turn solidify the prospect of the country's timely accession to the EU in 2007. Romania's recent advancement of structural reforms in the country's state-owned enterprise sector should lead to lasting improvements in public sector finances, while prospects for deepening parastatal reform are encouraging. The government
