June 5, 2025

A roundup of domestic and international news

Newsroom, 05.06.2025, 13:55

Negotiations. Negotiations continue in Bucharest in the governmental working group on the package of fiscal measures, gathered under the coordination of President Nicușor Dan. On the list brought to the table for discussion with the pro-western parties – PSD, PNL, USR and UDMR – that could form the future government, are several tax measures, the aim being to identify from which areas more money could be collected for the state budget in the shortest possible time. There are several options being analyzed, which include raising the standard VAT rate from 19% to 21%, with possible exemptions for food and medicines, which would have a reduced VAT rate of 5%. Another proposal would increase the dividend tax to 16% from 10% currently. In addition, pensions above 2,500-3,000 lei (500-600 euro) could be subject to a 10% health contribution (CASS), while copyright contracts would be subject to both CAS and CASS. Transfer taxation and income outsourcing could be taxed at 2%. There is also talk of a 16% solidarity tax to be paid by those with an income of more than 10,000 lei (around €2,000) – a measure to be implemented by the end of this year. Last but not least, an increase in excise duties is also being discussed, not including excise duties on fuel, as well as the taxation of cryptocurrencies or an increase in taxes on gambling. All these issues are only being debated for the time being, and the final package of tax measures of the incoming executive will be decided later. The measures are to be implemented from July 1 and are designed to tackle excessive macroeconomic imbalances.

Deficit. The European Commission’s half-yearly analysis shows that Romania is the only country in the European Union with excessive macroeconomic imbalances and has not taken any effective measures compared to what it has undertaken to do. According to the Commission, the increase in the deficit was caused, among other things, by an increase in current expenditure, higher salaries and pensions. Brussels is asking Romania to present quick and effective measures, otherwise it risks not meeting the deficit correction targets by 2030 and may enter procedures that will lead to the loss of European funds as of next year. Roxana Mînzatu, executive vice-president of the European Commission, said that the situation is serious, but any risk can certainly be avoided if Romania’s new government sends its proposals for deficit reduction. More on this after the news.

Law. The Chamber of Deputies in Bucharest has adopted, by a near-unanimous vote, a draft amending and supplementing some legislative acts to combat violence. The new law provides for tougher penalties. Hitting or any act of violence causing physical suffering will be punishable by imprisonment from 6 months to 3 years or a fine, compared with 3 months to 2 years or a fine, as previously provided for in the Criminal Code.

Agriculture. President Nicuşor Dan has stated that Romania is not utilizing its current agricultural potential and that a long-term strategy is required in this area. Nicuşor Dan participated in the National Forum for the Future of Agriculture, dedicated to presenting the conclusions and promoting the important initiatives resulting from the series of six Regional Forums organized in recent months by the Romanian Farmers’ Club. The event brought together government leaders, farmers, investors and experts to launch four strategic initiatives dedicated to the transformation of agriculture and the development of the Romanian agri-food industry: agri-food chain competitiveness; strategic public-private investments to increase competitiveness; climate risk management; and farm digitisation.

Football. Romania’s Under-21 national football team defeated Georgia 1-0 (0-0) on Wednesday in a friendly match in Vorau (Austria). The Romanian team will make their debut against Italy on June 11 at the final tournament of the European Under-21 Championship in Slovakia. The Romanians are in Group A alongside Italy, Spain and Slovakia. This is the fourth consecutive participation in a final tournament for the Romanian youth team. (MI)