Romania’s Govt. reviews options for addressing fiscal slippage

Romania’s ruling coalition keeps reviewing options that could help it avoid the imminent fiscal slippage this year, but not many of the options are yet backed by the government.

A set of corrective measures, including higher property taxation, higher dividend tax rate, higher taxation of micro-enterprises, elimination of preferential VAT rates and even higher regular VAT rate, surfaced in the media on July 12.

In the meantime, a mission of the European Commission met Romanian authorities in Bucharest to remind them that failure to meet fiscal consolidation targets will result in fewer funds extended under the multiannual financial framework, Cursdeguvernare.ro reported.

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