Romania's economic policy mix is dysfunctional, with the monetary policy acting as a firefighter to the fiscal policy's arsonist. The fiscal policy has been pro-cyclical, aligning more with the electoral cycle than economic stability. The pandemic caught Romania with the highest budget deficit in the EU, limiting its ability to support the economy. The central bank raised interest rates to combat inflation, but the Ministry of Finance has de facto abandoned the gradual reduction of the budget deficit, exacerbating economic challenges. Romania, being the only EU country in the Excessive Deficit Procedure before the pandemic, faces the risk of reduced non-reimbursable EU funds for non-compliance with deficit reduction measures.