Joint Call of the business environment to Political Parties

In the context of current debates regarding economic recovery measures and budget deficit correction, business organizations are making a firm call to the leaders of parliamentary parties involved in the ongoing consultations.

“We are aware that the decisions and actions taken during this period will have a profound and lasting impact on the population, companies, the economy, investor confidence, and Romania’s international standing. That is why we need real dialogue, so that the measures adopted address both the correction of imbalances and the protection of the economy’s capacity to perform in the medium and long term.

We urge political parties to listen to the voice of businesses, which have supported and continue to support the economy. We are concerned that the current debate appears to be overwhelmingly focused on raising taxes and lacks any publicly assumed vision for reducing excessive government spending or modernizing the state apparatus. Without a real commitment to internal reform, any fiscal measures risk only burdening the economic engine needed for recovery.

We are aware that the risks of EU funds being blocked and a downgrade of the country’s credit rating—both devastating for Romania’s future—require a comprehensive and responsible public response, with a mix of measures aimed at both reducing expenditures and increasing revenues. At the same time, the upcoming package of measures must also include policies to stimulate investment and economic activity.

In order to maintain Romania’s key competitive advantages, such as the flat rate, and avoid discouraging investments, but also to allow us to develop in the long term, we consider it imperative that any package of measures be based on:

• Maintaining the flat tax rate, applied uniformly and equitably, with the elimination of all exceptions, a simple and efficient mechanism for both taxpayers and authorities, essential for supporting economic growth, reducing distortions, and combating tax evasion.
• Reducing non-essential public spending, including excessive administrative costs, redundant agencies, and discretionary political expenditures.
• Meaningful reforms in public sector management, prioritizing performance, efficiency, real reduction of bureaucratic burdens, and transparency.
• Eliminating wasteful budget allocations, such as unjustified allowances and excessive public funding of electoral campaigns.
• Protecting and prioritizing essential public investments in infrastructure, education, and innovation—foundations for long-term growth.
• Ensuring tax equity by eliminating exemptions, taxes on turnover, and the tax on special constructions.
• Efficient tax collection by reducing the VAT gap and prioritizing efforts to combat large-scale tax evasion.
• Accelerating digitization, administrative simplification, and reduction of bureaucracy.
• Maximizing the absorption of European funds through simplified procedures and the elimination of bureaucratic bottlenecks.

The state must lead by example. A credible response to this fiscal challenge begins with a clear message that it is ready to optimize the use of public money and reform itself.

Improving collection and voluntary compliance through smart enforcement, digitalization, and addressing systemic tax evasion, as well as enhancing the transparency and predictability of tax policies and the use of public funds, is an essential part of the solution. However, this should not be confused with introducing new taxes or increasing existing ones, or with unfairly punishing the same honest taxpayers through the actions of the competent agencies.

The private sector is already operating under significant pressures caused by unpredictability and administrative burdens. The current discussions, leaked to the public, in the absence of impact analyses involving the business community, further fuel the degree of instability and economic blockage, especially given that the state is not honoring its obligations to reimburse the amounts owed to a large part of honest and good-paying taxpayers in the private sector. Solidarity cannot function without a minimum of reciprocity, nor in a fiscal context that permanently creates inequities and privileged categories.

Honest companies should not have to pay to cover the deficit caused by irresponsible management of public finances. Efficient and responsible economic activity, as well as work performance adequately paid, should not be discouraged by tax mechanisms that hinder growth.

The European Commission’s Spring 2025 Package highlights Romania’s excessive spending and deviations from its fiscal targets. Ignoring these signals will only deepen the imbalance. What is needed now is not another round of taxes, but a responsible medium-term fiscal plan, anchored in spending reform, institutional efficiency, and economic predictability.

As always, the private sector understands the seriousness and urgency of the situation and is ready to be part of the solution. We need transparency and dialogue, and the solidarity requested of the private sector must be demonstrated at all levels of the state, not by implicitly shifting the burden onto the private sector, but by genuinely committing to reform and discipline in public finance management.

We invite you to a genuine dialogue with the business community, as it is essential before approving any policy package. The private sector must be actively involved in the consultations on the policy package that will be included in the new Government’s program,” said the business entities.

Signatory organizations:

• AHK – Romanian-German Chamber of Commerce and Industry
• AMCHAM ROMANIA – American Chamber of Commerce in Romania
• AOAR – Association of Romanian Businessmen
• BEROCC – Belgium Luxembourg – Romania Moldova Chamber of Commerce
• BRCC – British-Romanian Chamber of Commerce
• CCIFER – Chambre Française de Commerce, d’Industrie et d’Agriculture en Roumanie
• CCIPR – Camera di Commercio Italiana per la Romania
• NRCC – Netherlands – Romanian Chamber of Commerce
• Concordia – Confederația Patronală Concordia
• FIC –  Foreign Investors Council
• RBL – Romanian Business Leaders