Romania's new government approves new economic plan aimed at slashing deficit, state spending

euronews (in English)

Romania’s new coalition government approves a new economic plan aimed at keeping government budget deficits under control for the upcoming 2025 fiscal year.

Transcript

00:00Romania's Prime Minister Marcel Ciolacu announced a new economic plan aimed at addressing the

00:07government's budget deficit issues.

00:10The new plans introduced hikes in taxes as well as caps on public sector wages and pensions,

00:15which were supposed to be indexed starting in January.

00:19The new measures will also scrap tax breaks and incentives given to various sectors including

00:24I.T. and construction, while also imposing new property taxes on buildings owned by companies.

00:31It aims to decrease Romania's budget deficit from 8.5% of GDP to 7% by the end of 2025.

00:39The announcement of the new plan, which has already been adopted, was met with criticism.

00:45I do not intend to be popular in this mandate, but to be extremely efficient.

00:52In other words, criticize me, but let Romania move forward and develop.

01:00There is no other way.

01:04Various groups affected by the new plans took to the streets of Bucharest in protest of the pay cuts.

01:11They say the measures are similar to 1980s austerity policies and labeled them a new form of slavery.

01:18Ciolacu fired back saying austerity measures cut salaries by 25% and suspended state services,

01:25which will not happen.

01:27The Romanian premier says Bucharest will continue with policy aimed at stabilizing the country's financial situation.

01:35The government plans to roll out more increments with a goal of reaching a 2.5% deficit over a seven-year period.

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