PA Focus – February Fiscal Evolution: Key Updates for Public Affairs Professionals
February has been an active month for Romania's fiscal and economic landscape, with significant announcements and regulatory updates that businesses, particularly those in public affairs and legal departments, should closely follow.
February has been an active month for Romania's fiscal and economic landscape, with significant announcements and regulatory updates that businesses, particularly those in public affairs and legal departments, should closely follow.
IMF and World Bank: Stability, Not Austerity
Finance Minister Tánczos Barna provided reassuring news following meetings with IMF and World Bank representatives. Contrary to concerns, Romania will not adopt austerity measures, drastic tax increases, or immediate budget cuts. The focus instead is on reducing the budget deficit to 7% through improved efficiency and increased investments that stimulate economic growth. Barna emphasized that the 2025 State Budget assumes normal economic conditions, yet he cautioned that global economic volatility could require revisions in the future.
Tax Stability and Spending Discipline Promised by PM Ciolacu
During discussions with the Foreign Investors Council, Prime Minister Marcel Ciolacu reaffirmed the government's commitment to maintaining the current flat tax rate and VAT level. He projected a modest yet realistic economic growth rate of 2.5% for 2025. To achieve these targets, Ciolacu highlighted the need for enhanced tax revenue collection efficiency and strict control of government expenditures, aligning to keep the budget deficit at or below 7%.
Proactive Consultations with the Business Community
Interim President Ilie Bolojan initiated extensive consultations with Romania’s chambers of commerce, addressing essential tax issues, such as Form D177, which covers corporate tax and microenterprise tax redirection, as well as the importance of attracting and facilitating foreign investments. Additionally, Labor Minister Simona Bucura-Oprescu’s discussions with the Concordia Employers’ Confederation brought clarity on several key measures:
- Launch of the REGES-ONLINE system to replace REVISAL in the second half of 2025.
- Implementation of EU Directive 2023/970 on salary transparency by June 2026.
- Revision and development of 380 occupational standards.
- Piloting individual learning accounts under the Educational and Occupational Plan (PEO).
- Mandating companies with over 50 employees to hire at least 4% staff with disabilities and partner with NGOs to improve employment outcomes.
New Mechanism for Minimum Gross Wage
The Romanian government introduced a clear methodology for determining the national gross minimum wage. According to this, adjustments will align systematically with inflation rates and projected labor productivity. This reform supports broader social reform goals outlined in Romania’s National Recovery and Resilience Plan (NRRP).
