Romanian PM unveils fiscal package with VAT, fuel tax hikes to reduce deficit

The Romanian government will implement tax hikes and spending reforms starting August 1 in an attempt to curb the growing budget deficit and avoid a looming financial crisis, prime minister Ilie Bolojan announced. The measures include increases in VAT and excise duties, a new health contribution on pensions, and a doubling of the tax on bank profits.

Bolojan said the government will assume responsibility for the fiscal package next week, bypassing a full parliamentary vote.