The fiscal-budgetary measures, including the increase in VAT by 10.52%, from a rate of 19 to 21 percent, as well as excise duties, lead to a decrease in the purchasing power of all citizens and affect the stability or predictability in society, generating a negative social and economic impact on the entire society, which will experience effects similar to the period of the 2010s, shows the Economic and Social Council (CES), which gave an unfavorable opinion on the fiscal package prepared by the Government.

CES claims that “given the complexity of the draft normative act, a detailed and rigorous analysis is necessary, which is impossible to achieve in the insufficient time provided for the approval”, states the CES Opinion, consulted by Energynomics.

At the same time, the imposed measures will lead to an increase in the prices of basic foodstuffs and medicines, and together with the liberalization of electricity and gas prices, the reduction in income for some employees through Government Emergency Ordinance No. 36/2025, all of these lead to a drastic decrease in the standard of living in a very short time, without prior preparation of the population, especially vulnerable individuals and families.

“We believe that the austerity measures should have been approached in stages, over a longer period of time,” the document states.

According to the cited document, the set of proposed measures is socially unbalanced, lacking a compensation mechanism for vulnerable categories and built on a regressive fiscal logic.

At the same time, the project does not respect the principles of equity and progressivity in terms of public policies, transferring the fiscal pressure to the population with low and middle incomes.

“The proposed measures are likely to deepen social inequalities, affect access to essential goods and reduce the subsistence capacity of vulnerable households. They may also have a social destabilizing effect and fuel social and political tensions in a context already marked by polarization and institutional distrust.”

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.