The amendments promoted by the Social Democratic Party (PSD), including one for increasing the social spending this year under the so-called “solidarity package” by RON 1.1 billion (EUR 200 million, 0.05% of GDP), were approved by the Parliament’s labour committee on March 16 with the support of the representatives of the Alliance for the Union of Romania (AUR, opposition), Young People Party (POT, opposition) and Hungarian Party (UDMR, ruling), according to Cotidianul.ro.

The ruling coalition has discussed and approved a final form of the 2026 budget plan, which the government approved last week and sent to Parliament. Over the weekend, however, the Social Democrats held a meeting and decided to go ahead with some amendments, blaming prime minister Ilie Bolojan and Save Romania Union (USR) for excessive austerity measures. 

PM Bolojan’s Liberal Party (PNL) and USR have voted against the amendments to the budget law filed by the Social Democrats in parliament. Notably, the Hungarian party UDMR confirmed its position of siding with PSD (this time with AUR as well) when voting for social measures.

PSD argued that the RON 1.1 billion could be financed from better collection of debts owed by companies under insolvency to the state budget. The Social Democrats also argued that the higher VAT revenues prompted by the fuel price hikes could also be used for social purposes.

Finance Minister Alexandru Nazare (PNL), however, rejected such financing sources as “uncertain.” He, in turn, proposed identifying other financing sources, such as programmes under the European Social Fund – which he said can be done during the year.

iulian@romania-insider.com

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