Romania urgently needs Package 2 of measures, aimed at restructuring state spending, reducing investments, and cleaning up the business environment from companies with potential evasion risks, says economic consultant Adrian Negrescu.
And Bolojan stated for Bloomberg: If we do not quickly reduce spending, Romania risks default.
„Romania urgently needs Package 2 of measures, as the tax increases have not been enough to cover the huge holes in the state budget.
There is a need to reduce public spending, which, after the first six months, increased by 12.1%, to 380 billion lei.
In other words, we continue to spend more than we can afford, wasting public money on various projects that have no connection to economic reality.
We still plan to build stadiums worth 50 million euros, while we did not have the funds to adjust child allowances.
We continue to dream of local construction projects that have no connection to economic reality.
While the private sector is restructuring, adapting its activities to the new economic reality, in the public sector, mayors live in a parallel reality where milk and honey still flow, just like in 2024," said Adrian Negrescu.
In his opinion, Package 2 of measures should include, on one hand, measures to restructure state spending, reduce investments, reduce the volume of expenses in the salary sector, restructure the public apparatus, and merge public institutions, and on the other hand, the measures announced by Finance Minister Alexandru Nazare, targeting cleaning up the business environment from companies with potential evasion risks.
"The fact that we have 700,000 companies without a bank account proves the need for a general cleanup in the business environment, and I hope this will happen, including in the way ANAF will have to act in the near future.
The good news is that the turnover tax for large companies is being eliminated, a unique tax at the European level, a tax that has heavily inhibited investments in our country and made many foreign investors avoid Romania when planning their future investment projects.
We need fiscal predictability, and I hope that Package 2 will be approved as soon as possible, by mid-September, so that it can have economic effects, reducing the budget deficit and supporting the investments we truly need," added the economic consultant.
Prime Minister Ilie Bolojan stated on Wednesday that the second package of fiscal measures to reduce the deficit will be adopted by the end of August through the Government's assumption of responsibility.
Finance Minister Alexandru Nazare, in turn, explained that the second package of fiscal measures will change the philosophy regarding how staggerings are made, penalize the transfer of social parts held in a limited liability company if it has unpaid tax obligations, and establish the obligation for legal entities to have a bank account.
The project also includes increasing the share capital to 8,000 lei for limited liability companies, from 1 leu currently, removing the 50,000 lei limit for card payments, and replacing the turnover tax, which currently applies to companies with turnovers exceeding 50 million euros, with a new tax on affiliates, targeting the area through which multinationals export their profits.
- Major Changes for Limited Liability Companies: Minimum Share Capital of 8,000 lei and Criminal Sanctions for Fraudulent Transfers
- Companies without a bank account or without submitted financial statements risk being declared inactive. ANAF may request deregistration after one year – Finance project
- Finance Minister announces a new taxation formula for multinationals. The staggerings system will be reconsidered, measures regarding ANAF activities (Video)