SUSTAINABILITY OF ROMANIA’S SOVEREIGN DEBT SERVICE – BETWEEN THE PRINCIPLE OF FISCAL PRUDENCE AND THE ETHICS OF GOVERNMENTAL RESPONSIBILITY

Abstract

The sustainability of Romania’s sovereign debt service represents a major area of interest in the context of growing budgetary pressures, global economic volatility, and the need to ensure long-term financial stability. This research examines how the Romanian state manages its public debt obligations, with emphasis on the relationship between the level of indebtedness, financing costs, and the economy’s capacity to support repayment without undermining social development and investment programs. The principle of fiscal prudence is essential in shaping governmental decisions, requiring the avoidance of excessive deficits, optimization of maturity structures, reduction of foreign-currency exposure, and responsible use of borrowed resources.

At the same time, the paper addresses the ethical dimension of public debt, as today’s borrowing is repaid not only by current taxpayers but also by future generations. Institutional transparency, responsible allocation of borrowed funds, respect for intergenerational equity, and the moral justification of debt accumulation become fundamental evaluation criteria. The study proposes an integrated assessment of sovereign debt sustainability, combining macroeconomic indicators with normative perspectives on good governance. The conclusions highlight the need for fiscal consolidation, improved debt management, and the adoption of a firm ethical framework in public policy formulation, in order to ensure that debt servicing remains economically bearable and socially legitimate.