The Constitutional Court of Romania (CCR) on October 8 cleared another two laws out of the five drafted by the government under the second package of budgetary measures, raising to three the number of laws already cleared and deferring for October 20 the decision on the two most delicate ones. Thus, the CCR has not ruled yet on the key law regulating the regime of magistrates’ retirement (pay, retirement age) and the law that includes several fiscal amendments, such as the controversial “tax on affiliates.”
The move came two days before the October 10 Ecofin meeting, where Romania’s progress along the fiscal consolidation path will be evaluated.
The deferral does not reportedly put Romania’s position under the Ecofin review at risk. The first package of budgetary measures, legislated in July, is broadly seen as securing the necessary fiscal consolidation in 2026, while the second package is rather aimed at consolidating the fiscal stability over the long term by streamlining the functioning of the state institutions (market regulators, state owned enterprises, public health system, public pension system, tax administration agency (ANAF).
However, the sluggish negotiations among the ruling parties for the second package of budgetary measures and the modest outcome, in terms of reforms, of the laws passed by the government might be seen as indications of the ruling coalition’s poor capacity to sustain fiscal consolidation efforts over a longer period of time and to promote deep structural reforms.
Prime minister Ilie Bolojan cheered CCR’s decision, saying it allowed the government to implement two important reforms from the second package: the reform of state-owned companies and the reform of the healthcare system.
“These two decisions are in addition to last month’s decision by the CCR regarding the law on self-financed authorities, so that three of the five normative acts in package two have already passed the constitutionality test,” the prime minister said in a statement, as reported by Ziarul Financiar.
The government initially planned to include a sixth law in the second package of budgetary reforms to address the local administration.
However, the mainstream political parties, where local representatives have a major influence and depend on the current byzantine organisation of the local administration, refused any reforms. The ruling coalition is set to resume on October 13 the talks on the law.
The Social Democrats (PSD) reportedly try to push their own, milder version of the law versus the prime minister Ilie Bolojan, who insists on clear targets for lower employment.
The tensions between the ruling parties were further aggravated by the emergency ordinance OUG 52/2025 blocking the purchase of goods and services in the local administration units by the end of the year. PM Bolojan promised to amend the ordinance, accused by the political parties of being an obstacle to the most basic functions.
iulian@romania-insider.com
(Photo source: Inquam Photos/Octav Ganea)
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