Romanian Prime Minister plans to complete the second and third rounds of fiscal reforms by the end of July
Romania's Prime Minister, Ilie Bolojan, has announced the second and third fiscal-budgetary reform packages, aimed at continuing fiscal consolidation and enhancing economic stability. The packages were unveiled in July 2025 and are set to build upon the success of the first fiscal package, which focused on increasing budget revenues.
The **Second Reform Package**
The second reform package is centred on structural improvements in state-owned enterprises and enhanced revenue collection. Key elements include reforms to companies where the state holds a majority stake, amendments to tax legislation to improve collection efficiency, measures to reduce inefficiencies in the healthcare system, and actions to raise overall revenue intake. This package is being coordinated by Deputy Prime Minister Dragos Anastatsiu.
The **Third Reform Package**
The third reform package, on the other hand, focuses on public administration reform. Key measures include property tax reform, fulfilling an obligation under Romania’s Recovery and Resilience Plan (PNRR), administrative decentralization, the transfer of deteriorated state assets to local authorities, increased efficiency in local government operations, and provisions regarding the retirement of magistrates and the treatment of special pensions. Minister of Development Cseke Attila is coordinating this package.
Both packages are expected to be implemented shortly after their presentation, reinforcing the efforts initiated with the first fiscal package. The first package focused on increasing budget revenues through higher VAT and a broader health insurance contribution base.
The necessity of the subsequent reforms is attributed to the positive reception of the initial fiscal-budgetary reform package by rating agencies, investors, and improved results from Romania's Eurobond issuance. Prime Minister Bolojan stated that these reforms are necessary to maintain the favorable perception Romania has gained in the markets.
The technical team is currently drafting the details of the two new packages, with the second package focusing on reforms to state-owned enterprises, tax amendments, healthcare system improvements, and revenue-raising measures, and the third package focusing on public administration reform, property tax reform, administrative decentralization, and increased efficiency in local government operations.
In the third reform package, local government support from the central budget will be linked to local tax collection performance, aiming to boost efficiency and accountability in local government operations. This move is expected to further strengthen Romania's economic stability and investor confidence.
The Second Reform Package, spearheaded by Deputy Prime Minister Dragos Anastatsiu, concentrates on structural improvements within state-owned enterprises and boosting revenue collection. This includes reforms to companies majority-owned by the state, amendments to tax legislation, measures to decrease healthcare inefficiencies, and steps to raise overall revenue.
The Third Reform Package, coordinated by Minister of Development Cseke Attila, focuses on refining public administration. Key aspects include property tax reform, administrative decentralization, the transfer of deteriorated state assets to local authorities, enhanced efficiency in local government operations, and provisions for magistrate retirement and special pension treatment.
