Since 2019, Romania has been under the excessive deficit procedure. Real solutions have been postponed for too long, and we now find ourselves in a difficult situation regarding budgetary sustainability. Under these circumstances, deciding on a new Government and adopting a realistic action plan are essential to maintain the economy on a stable trajectory.

We believe the budget deficit should be corrected through efforts to reduce public spending and improve revenue collection, without further increasing the tax burden. In the long term, we consider that a strategic perspective is needed to reduce fiscal deficits, one that also leverages Romania’s economic growth potential. Fiscal reforms should support the revival of the private sector’s capacity to invest in the national economy

In response to recent public proposals to introduce a progressive income tax system for individuals as a measure to reduce the budget deficit, we reiterate our previously stated position. The business community believes that such a measure would not generate the necessary budget revenues in the short term. In the long term, it should be assessed in terms of its full economic impact on the labor force and investors, with broad consultation of all stakeholders.