Romania’s Social Democratic Party (PSD), after a meeting of its leadership on February 1, decided to push for the rapid passage of a package of measures aimed at both economic relaunch and social protection (solidarity). The cost of the package would be RON 3.39 billion (EUR 665 million, 1.65% of GDP), according to a press release issued by the party, cited by Bursa.ro.

PSD insists the two packages should be legislated before the 2026 budget planning.

The structure and total cost of the two packages of measures remain, to some extent, unclear. It remains unclear whether the RON 3.39 billion budget covers the economic relaunch package as well, or only the solidarity package.

Prime minister Bolojan mentioned a 0.12% of GDP budget for the economic relaunch budget, out of a 6.2%-of-GDP deficit target for 2026.

The economic recovery package “is vital for maintaining jobs and for the survival of Romanian companies,” and the solidarity package “ensures minimal protection for those directly hit by austerity: pensioners with low pensions, children with disabilities, mothers with children, veterans or people with disabilities,” according to the PSD press release.

The “solidarity” package would include one-off subsidies paid to recipients of pensions under RON 1,500, RON 2,000, and RON 3,000, respectively – some 2.35 million recipients altogether, with a budget of RON 2 billion. Separately, the low-income households should receive compensation after the liberalisation of the natural gas prices.

The press release indicates a total number of 2.8 million retired persons – but the figures in the breakdown per income segment do not add up. At the same time, the support for “children with disabilities, mothers with children, veterans, or people with disabilities” was not explained.

Separately, the party speaks of 5 million people being helped by the RON 3.39 billion package – but it remains unclear whether the 2.2 million recipients and RON 1.39 billion are assigned to other social measures or to the economic relaunch package. The magnitude of the economic relaunch plans, as detailed by Gandul.ro last week when a ruling coalition task team was set up for this specific package, indicates that its budget might not be included in the RON 3.39 billion indicated by PSD.

The economic relaunch package is under construction by the task team set at the level of the ruling coalition. Last week, Gandul.ro unveiled some measures of impressive magnitude. 

During the meeting, the Social Democrats proposed greenfield investments of over EUR 10 billion, guarantees of EUR 15 billion for at least 50,000 SMEs, and the creation of at least 120,000 stable and well-paid jobs in industry and high-tech sectors. Also, among the measures in the economic recovery package are the increase in exports and the reduction of imports. All of these would be implemented over the next 7 years.

MEP Claudiu Manda has published some clues from the economic recovery package. He said that the recovery package proposed by the Social Democrats is vital for the future of the country and is not negotiable. Among the proposed measures are: tax credit for research and development, accelerated depreciation for investments in new production equipment, tax exemption on reinvested profits, or the immediate deduction of fixed assets expenses.

In addition, the Social Democrats propose a series of super-deductions for companies that list on the stock exchange, increasing the period from 30 to 90 days for hiring an employee in micro-enterprises, a deduction of 400 euros for contributions to supplementary pensions, and a 3% bonus for companies that declare and pay their taxes on time.

iulian@romania-insider.com

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