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Tuesday, Jan 21, 2025

Mediapool

Romania faces severe budget crisis, implementing harsh austerity measures like pension freezes and tax hikes.

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[This is an automatically generated summary, for reference only]

Budgetary nightmares that were once a threat are now a reality in Romania, as the new government unexpectedly implemented severe austerity measures just before the New Year. These measures include freezing pensions, salaries, and benefits, increasing tax rates, and cutting investments, all due to a large budget deficit of 8.6% of GDP, which is already a statistic for 2024 in neighboring Romania while it remains only a warning in Bulgaria.

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