Romanian Government Assumes Responsibility for Austerity Package 2

Tensions erupted in Parliament on Monday evening after Prime Minister Ilie Bolojan announced that the Government would assume responsibility for the second package of fiscal and budgetary measures. The five draft laws presented cover special pensions, healthcare, state-owned companies, regulatory authorities, and fiscal reforms.

“The Romanian state is full of injustices – privileges, sinecures, waste. We are cleaning up and restoring order,” Bolojan declared from the parliamentary rostrum. The opposition immediately fired back with shouts of “Resignation!”

What Austerity Package 2 Includes
1. Share capital for limited liability companies (SRLs)

• For companies with annual turnover under 400,000 lei → minimum share capital: 500 lei.
• For companies with turnover above 400,000 lei → minimum share capital: 5,000 lei.
• Level aligned with the net average wage (approx. 5,000 lei).
  → The initial proposal requiring 90,000 lei for larger companies was dropped after criticism.

2. Property and land tax

• Gradual taxation based on market value, to be phased in by 2026.
• Reduction of the correction coefficient for apartments in large blocks (over 3 floors and 8 units).

3. Vehicle tax

• Based on the “polluter pays” principle.
• Differentiated taxes according to engine capacity and pollution standard.
• Applies to the first 8 categories of motor vehicles.
• Adjustment coefficients between 0.95 and 1.3.
• System inspired by Bulgaria’s model.

4. Health insurance contribution (CASS) base for self-employed

• Ceiling raised from 60 to 72 gross minimum wages per year.
• Calculated based on the minimum wage as of January 1, regardless of later changes.
• Goal: narrowing the tax gap between employees and the self-employed.

5. Other fiscal measures

• Fixed tax of 25 lei for each non-EU parcel under €150.
• Affiliate tax replacing the minimum turnover tax.
• Higher tax on stock exchange gains and cryptocurrency transactions (16%).
• Estimated budget impact: 3.7 billion lei.

6. Reform of public institutions and regulatory authorities

• ASF, ANRE, and ANCOM: 10% cut in specialist positions, 30% cut in support staff.
• Salaries and allowances reduced by 30%, bonuses capped.
• Mandatory publication of organizational charts and salary grids.

7. Special pensions

• Retirement age for magistrates to gradually rise to 65.
• Ten-year transition period for early retirement.

8. Healthcare

• 20% reduction in continuous hospitalizations.
• Higher reimbursements for outpatient consultations (6.5 lei).