Social Democrats in Romania express that the proposed anti-profit shifting tax is a positive step, yet falls short of the mark.
Romania's Social Democrats Call for Fiscal Reforms and Infrastructure Investments
Sorin Grindeanu, the interim president of the Social Democratic Party (PSD) in Romania, has stated that the new tax formula for multinationals is a necessary step but not sufficient. Grindeanu is pushing for a broader reform package that focuses on reducing privileges, eliminating tax breaks, and increasing tax burdens on certain wealth categories to promote fairness and fiscal consolidation.
In a meeting with the minister of finance, Alexandru Nazare, Grindeanu discussed the new tax formula for multinationals and reiterated his party's request for more funds for the Anghel Saligny National Program, a major infrastructure project. While the details of the proposed fiscal measures are still under negotiation, Grindeanu has emphasized the need for the budget adjustment to consider Romania's development needs.
Among the plans being considered are the tripling of the tax on large fortunes and higher taxes on cryptocurrencies. Additionally, Grindeanu has demanded the adoption of a package to eliminate various privileges, such as special pensions, alongside administrative reforms such as the reduction of state agencies and board members of state-owned enterprises.
Grindeanu and his party believe in a fairer, more efficient, and transparent tax system, one that removes exemptions and tax breaks to better support the economy and public services. This approach is consistent with broader fiscal reforms set out in the government's roadmap for 2025-2026.
However, Grindeanu has not yet specified a timeline for his party's withdrawal from the governing coalition meetings, and it is unclear if this withdrawal will have any immediate impact on the government's actions. What is clear is that Grindeanu and the PSD are committed to maintaining and continuing public investments, notably under the Anghel Saligny infrastructure program, alongside fiscal reforms.
The measure to block profit shifting by multinationals, welcomed by Grindeanu and Nazare, is seen as the first stage of a broader reform regarding a fair tax system. Additional measures, such as tripling the tax on large fortunes and increasing taxes on cryptocurrencies, will be analyzed in the coming period.
[1] Romania Insider, "Sorin Grindeanu: PSD to boycott coalition meetings until government adopts measures to eliminate privileges", 2021. [2] Agerpres, "Sorin Grindeanu: PSD will not participate in the meetings of the governing coalition until the government adopts a package of measures to eliminate privileges", 2021. [4] Ziarul Financiar, "Sorin Grindeanu: Discuțiile cu ministrul finanțelor vor continua în perioada următoare", 2021.
- The Social Democrats in Romania, led by Sorin Grindeanu, are pushing for a comprehensive fiscal reform that includes the elimination of various privileges, reductions in tax breaks, and increased tax burdens on certain wealth categories, all of which fall under the category of policy-and-legislation.
- In the realm of politics, Grindeanu and the Social Democrats have requested additional funds for infrastructure projects like the Anghel Saligny National Program, demonstrating a focus on public investments, which is general-news worth reporting.
