June 7, 2025 UPDATE
A roundup of domestic and international news
Newsroom, 07.06.2025, 19:30
Negotiations. The fiscal package discussed in recent days in Bucharest within the technical working group is to be negotiated by President Nicuşor Dan and representatives of the pro-European parties. All possible scenarios have been analysed. One option that has been discussed is to increase the VAT from 9% to 19% for certain products, including services in the hospitality industry. According to political sources, other proposals included increasing the tax on dividends from 10% to 16%, a solidarity tax on incomes above 10,000 lei (approx. 2,000 euros), a tax on income outsourcing, additional taxation on gambling, and higher excise duties on tobacco and alcohol. At the same time, the reorganisation of state institutions and companies through bonus cuts and mergers, as well as effective measures to combat tax evasion, have been the focus of representatives of the PSD, PNL, USR and UDMR. However, no final decision has been made on the fiscal package to reduce the budget deficit. The draft is to be negotiated politically at the beginning of next week by President Nicuşor Dan and the leaders of the four parties. Once the economic and financial measures have been agreed, negotiations for the future government formula will begin.
IMF. A team of experts from the International Monetary Fund is recommending a set of measures to reform Romania’s tax system and shift the tax burden from labor to consumption and, to a lesser extent, capital taxation. The institution estimates that, if fully implemented, these proposals could generate additional revenues of at least 1.2% of the GDP in 2025. On labor taxation, the IMF’s main recommendation is to move from the single 10% tax rate on labor income to a two-rate system of 15% and 25%, with the latter applying to the highest earners. On the taxation of capital and property income, the IMF believes that the tax on dividends distributed to individuals should be increased. When it comes to consumption taxes, IMF experts are of the opinion that reduced VAT rates should be increased to the standard rate, with the exception of basic foodstuffs.
Pilgrimage. More than 300 thousand pilgrims from home and abroad participated on Saturday in the Catholic Pentecost procession in Șumuleu Ciuc, Harghita County (center), under the motto “Pilgrims of Hope”, similar to that of the Jubilee Year 2025 declared by Pope Francis. The Catholic pilgrimage in Șumuleu Ciuc has a history of over 450 years and is considered the largest in Central and Eastern Europe. The pilgrimage is centered around the miracle-working statue of the Virgin Mary in the Franciscan church. Legend has it that in 1567 the Prince of Transylvania, John Sigismund, tried to impose Unitarianism on the Roman Catholics in the Saxon seats of Ciuc, Gheorgheni and Cashin, and people say it was only with the help of the miracle-working statue that they managed to resist and preserve their ancestral faith. Hundreds of interior ministry employees – gendarmes, policemen and firefighters – were mobilized for the smooth running of the event, as well as dozens of medical teams, rescue workers and Red Cross volunteers. In another move, over 22,000 employees of the Ministry of Internal Affairs, including police officers, firefighters and gendarmes, are mobilised during this long weekend celebrating Pentecost. There are over 1,800 traffic police officers on public roads, operating 400 speed cameras. Firefighters and SMURD crews are responding to emergencies and medical cases anywhere in the country and have temporary work stations. They are equipped with fire engines, extrication equipment and first aid supplies.
Moldova. Romania will continue to support education and research projects and programmes implemented in the Republic of Moldova, Romanian Minister of Education and Research Daniel David said on Saturday during a visit to Chisinau. He stressed that representatives of the ministries of the two countries will discuss initiatives to be implemented after 2026. These initiatives concern important projects and opportunities in the field of education and research. The Romanian official also announced that, starting with the new school year, the Romanian digital library EduLib will be accessible to teachers and children in the Republic of Moldova. In turn, the Minister of Education and Research of the Republic of Moldova, Dan Perciun, thanked Romania for its support over the years in implementing multiple important projects in the field of education, science and research. He also referred to projects aimed at researchers in the Republic of Moldova, which bring them closer to the European scientific community. Daniel David made his first official visit since taking office to the Republic of Moldova, where he participated in an event dedicated to researchers on both sides of the Prut River.
Sentence. Former Romanian Health Minister Sorina Pintea has been sentenced to three and a half years in prison after the Cluj Court of Appeal rejected as unfounded her appeal against the sentence initially handed down by the Bucharest Tribunal. She was indicted by anti-corruption prosecutors in 2020 in a case in which she is accused of receiving bribes of €10,000 and 120,000 lei (€24,000) during her time as manager of the Baia Mare Emergency Hospital. The money amounted to 7% of the value of a public procurement contract concluded by the hospital.
