The ratings on the Republic of Romania reflect the balance between, on one hand, its low public sector debt, high growth potential, and good prospects in the long term for structural reforms improving the economic structure; and on the other hand, its limited budgetary flexibility and weakening external liquidity. The outlook was revised to stable from positive on April 5, 2007, reflecting the protracted lack of political visibility since the beginning of 2007, which comes at a time when policy challenges remain significant, both in relation to the structural reforms required to make the most of EU membership, and to the containment of growing demand-driven external imbalances. EU accession ushered in a period of heightened political uncertainty in Romania. Multiple
