Romanian prime minister Ilie Bolojan announced on July 11 that the government is preparing its second and third fiscal-budgetary reform packages, to be finalised and presented by the end of the month. The measures are aimed at reinforcing the fiscal consolidation efforts initiated with the first package and ensuring continued investor confidence and political stability.
Speaking at a press conference, Bolojan said a technical team is currently drafting the details of the two new packages.
The first package, already submitted to Parliament, focused on increasing budget revenues through higher VAT and a broader health insurance contribution base.
The second package, coordinated by deputy prime minister Dragos Anastatsiu, according to the prime minister, will target structural improvements in state-owned enterprises and enhanced revenue collection. It will include reforms to companies in which the state is a majority shareholder, amendments to tax legislation, measures to reduce inefficiencies in the health system, and actions to raise overall revenue intake.
The third package, coordinated by minister of development Cseke Attila, will focus on the reform of public administration. It will include key measures such as property tax reform – an obligation under Romania’s Recovery and Resilience Plan (PNRR) – as well as administrative decentralisation, the transfer of deteriorating state assets to local authorities, and increased efficiency in local government operations. Local government support from the central budget will be linked to local tax collection performance.
Bolojan also confirmed that the third package will include provisions concerning the retirement of magistrates and the treatment of special pensions.
“These reforms are necessary to maintain the favourable perception we have gained in the markets,” Bolojan said, referring to the positive reception of the initial package by rating agencies and investors, as well as improved results from Romania’s Eurobond issuance.
Both reform packages are expected to be implemented shortly after their presentation at the end of July.
iulian@romania-insider.com
(Photo source: Gov.ro)
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