Romanian Prime Minister affirms implementation of second fiscal correction plan by July's end.
Romania's Prime Minister, Ilie Bolojan, has announced the upcoming presentation of the second fiscal package, which is set to be presented to Parliament by the end of July 2025. The package, primarily focusing on reforms in public administration, state-owned companies, and pension reform, aims to stabilise Romania's public finances and promote deeper reforms, moving beyond just immediate supplementary revenues.
One of the key elements of the package is the reform of special pensions. The government targets eliminating exceptions, ensuring the correct calculation of pensions, and aligning retirement with the general age. Previous attempts to reform special pensions have faced challenges due to negative rulings from the Constitutional Court, so legal complications are anticipated this time as well.
In the realm of state-owned companies and autonomous authorities, the government plans to restructure entities such as the Financial Supervisory Authority (ASF), telecom regulator ANCOM, and energy market regulator ANRE. The reforms involve reducing the number of board members, cutting pay for Boards of Directors, and making activities and contracts more transparent. However, specific details about these reforms are yet to be disclosed.
The package also seeks to reshape public administration by decentralizing and digitalizing local and central administration. This move is intended to reduce excessive public spending and increase efficiency.
Another significant aspect of the package is the combat against tax evasion and fraud. The government intends to achieve this through legislative amendments and enhanced action by the tax collection agency ANAF.
Furthermore, the government aims to secure urgent access to European funds and prioritise development-impact investments.
In summary, Prime Minister Bolojan's second fiscal package aims to stabilise Romania's public finances by reforming special pensions, restructuring state-owned enterprises and regulators, and enhancing the efficiency of public administration through digitalization and decentralization, all while improving transparency and combating fraud.
- The government's second fiscal package, as announced by Prime Minister Ilie Bolojan, will address business matters by reforming special pensions, restructuring state-owned companies such as the Financial Supervisory Authority (ASF), ANCOM, and ANRE, and reshaping public administration for greater efficiency.
- Moreover, the fiscal package targets politics and general-news sectors by combating tax evasion and fraud through legislative amendments and enhanced action by the tax collection agency ANAF, and by securing urgent access to European funds for development-impact investments.
