New tensions are emerging within the coalition regarding the economic recovery program. PSD is demanding urgent approval of the package of measures and is accusing political blockages, at a time when Romania has entered a technical recession. On the other hand, the Minister of Economy, Irineu Darău (USR), speaks about the need for spending cuts and maintaining taxes for budget stability.
„PSD calls on PNL and USR to cease disputes over control of the funds allocated to the Economic Recovery Program – the only authentic reform of the current governing coalition! The package of measures must be urgently approved by the Ministry of Economy!
PSD emphasizes that the program it initiated back in September 2025 has already been unacceptably delayed, a fact that has exacerbated the economic decline caused by the austerity measures adopted by the Bolojan Government last year," said the Social Democrats in an official statement issued on Friday.
The party warns that after entering a technical recession, Romania can no longer afford new blockages.
"Romania urgently needs economic stimuli"
PSD insists that the issue is not who controls the funds, but the swift start of the program.
"Romania urgently needs economic stimuli to reverse the economic decline of the last two quarters. The two parties vying for control of the funds allocated in this program should show maturity and set aside their political egos. It is less important who will manage those funds! What matters is that the reform is launched as quickly as possible to avoid deepening the economic recession," PSD stated.
The message comes amid tensions within the coalition regarding the management of resources allocated for economic recovery, a program presented by PSD as the main economic reform of the current government.
- PSD conditions staying in government on the introduction of economic recovery programs in the budget
Minister of Economy: Let's be upset with those who deepened the hole
In response to criticisms regarding the economic situation and the deficit, Minister of Economy Irineu Darău (USR) stated on Antena3 that responsibility for budget imbalances should be sought in the past.
"I would like us to be equally outraged when a lot of money is spent on frivolous things, on useless items, and the deficit deepens. We allow politicians to deepen the hole for 2-3-4 years in a row and then we get most upset with those who somehow have to rectify the situation. I think it would be very good to be upset with those who deepened the hole," the minister said.
While PSD talks about rapid economic stimuli, USR emphasizes budget discipline.
"Spending must be cut. Taxes remain"
The Minister of Economy argues that the first solution must be to reduce public spending, both at the central and local levels.
"I sincerely believe that some expenses need to be cut from the state, both at the local and central levels. I think this aspect has been somewhat delayed, but it is a coalition with 4 parties, so consensus must be reached. I think this would be an initial solution both budget-wise and for the population," Darău added.
He also conveyed a message regarding fiscal policy. "The state should show determination both centrally and locally in cutting expenses, which will eventually lead to tax reductions.
For everything we wanted to achieve in this year of austerity, there is no money. I support keeping these taxes with the 2-3 commitments made for 2027, including decreases, for example, eliminating the turnover tax, keeping it constant for a longer period, and ensuring the business environment, both Romanian and foreign, that taxes will remain. Including VAT. All of them," the Minister of Economy emphasized.