In a meeting on Wednesday, December 17, the leaders of Romania's four-party ruling coalition agreed on the last bills to be included in the second package of budgetary measures – primarily the public administration law, but also the minimum tax on turnover, the minimum wage, and the reduction of some other public expenditures. The parties also agreed that the measures to stimulate the economy, particularly argued by the Social Democrats, "will be detailed before the adoption of the 2026 budget, which will include them." 

On the public administration law, the parties agreed to "reduce central administration [personnel] expenditures by 10%, without affecting the basic salaries [which do not include bonuses and other extra payments]." Previously, they agreed to cut personnel expenditures in the local administration by reducing the number of employees by 10% – with a transitory period in 2026 when the local administration may cut the overall personnel expenditures without firing people. 

The minister of development will complete the law on public administration, which includes other measures previously agreed, in view of promoting it in Parliament under an accelerated procedure – most likely between Christmas and New Year's Eve.

The ruling coalition's parties also agreed on a 10% reduction in the level of subsidies received by political parties and a 10% reduction in the lump sum received by senators and deputies, Hotnews.ro reported.

The minimum turnover tax (IMCA) will be halved to 0.5% starting January 1, 2026, and will be eliminated in 2027, under another decision agreed.

Finally, the minimum statutory gross wage will increase by RON 275 (+6.8%) to RON 4,325 lei starting July 1, 2026. This is close to the minimum increase requested by the unions, backed by the Social Democrats on this particular matter.

Besides the budgetary measures, the parties of the ruling coalition touched on the topic of the simple motion against USR environment minister Diana Buzoianu, which was filed by the opposition and adopted by the Senate with the support of part of the Social Democrat MPs. No comment on the outcome of the discussions was released.

This decision by PSD  to support the motion against a minister of the coalition was formally a violation of the coalition agreement. The party leader, Sorin Grindeanu, upheld the decision in front of the coalition partners.

Article 19 of the coalition protocol states: "No parliamentarian, member of the parties and political formations that are part of the coalition will sign, support or vote for a simple motion directed against any member of the government or a motion of censure against the government."

Asked about this situation in Parliament one day after the December 15 vote on the motion, PSD president Sorin Grindeanu recalled that he discussed this situation with Liberal (PNL) prime minister Ilie Bolojan when he went to the government and asked the PM to dismiss Buzoianu.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)