Romanian finance minister Alexandru Nazare said Thursday, July 3, that the government’s new fiscal package had been negotiated with the European Commission and could receive a favorable assessment if adopted before the upcoming ECOFIN Council meeting, News.ro reported. Speaking at a press conference, he said the package marks the beginning of a new phase for Romania, one focused on building a solid foundation for a stable, investment-oriented economy.
According to the minister, the package is expected to generate RON 9.5 billion in additional revenue for 2025, while associated spending is projected at RON 1.2 billion. Savings from capping bonuses for hazardous work conditions will bring the total net impact for 2025 to RON 10.75 billion.
“The impact on total revenue for 2026 is RON 35 billion, while expenditures amount to RON 57 billion, but you have to take into account that we essentially included everything from the so-called Trenuleț Ordinance. Of those RON 57 billion, 18 billion represent the freezing of salaries, pensions, and all other related entitlements that were part of the Trenuleț Ordinance for 2026,” Nazare said.
The finance minister emphasized the constructive dialogue with the European Commission, noting that early adoption of the package could lead to a positive evaluation.
“We are entering a new path where our priority is to make sure the foundation is solid. From there, we want to build an economy focused on investment, predictability, and a new approach to budget supervision and fiscal discipline,” he said.
The package includes a range of fiscal adjustments. Recalibrating VAT rates is expected to bring in RON 6 billion. Excise duties are set to increase by RON 1 billion in 2025 and RON 3.5 billion in 2026. A new health insurance contribution cap on pensions over RON 3,000 will bring in nearly RON 1.4 billion next year and more than RON 4 billion in 2026.
The government is also doubling the temporary additional tax on the banking sector from 2% to 4%, which will generate RON 400 million in 2025 and almost RON 1.8 billion in 2026. Taxes on gambling will also rise significantly, with licensing fees increasing by about 30% and new brackets for winnings taxation. Players earning up to RON 10,000 will now face a 10% withholding tax, up from 3%.
“We want to send a strong message about gambling taxation, given how harmful we know this activity can be,” Nazare added.
The Ministry of Finance published on Thursday a draft law introducing several fiscal and budgetary measures, including an increase in the standard VAT rate from 19% to 21% and adjustments to the reduced rates from 5% and 9% to 11%. The draft also proposes higher excise duties, raising the dividend tax from 10% to 16%, and an additional tax on banks, Economica.net reported. It further includes increased taxation in the gambling sector and the introduction of a social security contribution on pensions exceeding RON 3,000, applied to the amount above this threshold.
All these measures were announced the day before by prime minister Ilie Bolojan, as the government is trying to curb the growing budget deficit and avoid a financial crisis.
irina.marica@romania-insider.com
(Photo source: Facebook/Alexandru Nazare)
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