Romania’s lawmakers approve 2026 budget law

On March 20, after the Social Democrats (PSD) reached an agreement with Liberal (PNL) prime minister Ilie Bolojan on the “solidarity package”, the joint chambers of the Romanian Parliament approved the 2026 budget, with 319 votes against 104 and three abstentions. The general government budget deficit was set at 6.25% of GDP, but the outdated underlying macroeconomic scenario (1% economic growth, 6.5% average consumer price inflation) will require significant amendments.

The main opposition party, the Alliance for the Union of Romanians (AUR), will refer the law to the Constitutional Court, party leader George Simion announced following the vote, G4media.ro reported. Notably, the agreement on financing the “solidarity package” proposed by PSD was achieved at the cost of deferring due payment to magistrates originating in backward adjustment of wages by court rulings.