Latest news with #IlieBolojan
Bloomberg
a day ago
- Business
- Bloomberg
Romania Plans Higher Property, Dividend Taxes to Curb Budget Gap
Romania's premier outlined fresh measures to cut the ballooning budget deficit as the new government seeks to safeguard the country's investment-grade rating and ease investor concern. The Black Sea nation plans to raise dividend and property taxes from next year, as well as put more emphasis on the performance of state-owned companies, according to Prime Minister Ilie Bolojan. These steps will be in addition to previously announced moves, including a temporary levy on 'excessive' bank profits, higher excise duties and ending some exemptions to value-added tax.
Arab Times
4 days ago
- Business
- Arab Times
Romania's new government sworn in
BUCHAREST, June 24, (Xinhua): Romania's new pro-European government, led by Prime Minister Ilie Bolojan, was sworn in Monday evening before President Nicusor Dan, marking the end of a period of political instability and interim leadership. The new cabinet is backed by a broad ruling coalition comprising the Social Democratic Party (PSD), National Liberal Party (PNL), Save Romania Union (USR), and the Hungarian Democratic Union of Romania (UDMR). Earlier in the day, the coalition secured a strong parliamentary mandate with 301 votes in favor and only 9 against. Following the swearing-in ceremony, Bolojan outlined the government's core priorities: restoring public financial order, ensuring effective governance, and safeguarding citizens' rights. President Dan welcomed the formation of the new cabinet, emphasizing the urgent need for fiscal reform and expressing optimism about Romania's economic outlook. He cited the country's dynamic private sector and reiterated the national goal of joining the Organisation for Economic Co-operation and Development (OECD) by the end of 2026 - a move he said could enhance foreign investment and reduce borrowing costs. Dan also underscored the importance of state reform and rebuilding public trust, urging both the coalition and minority representatives to act in the national interest. The newly formed government includes 16 ministers and five deputy prime ministers, one of whom is an independent tasked with overseeing state reform. Cabinet portfolios have been distributed proportionally among the coalition parties. With 311 seats in Romania's 464-member Parliament, the ruling coalition holds an outright majority. Earlier on Monday, party leaders signed a political agreement outlining a pro-Western agenda, a rotating premiership, and key policy objectives, including structural reforms and increased administrative transparency.
Qatar Tribune
5 days ago
- Politics
- Qatar Tribune
Romanian parliament votes in unwieldy pro-EU coalition government
BudapestcTypeface:> The Romanian parliament on Monday voted a new pro-EU coalition government into office, the Mediafax news agency reported. Both the upper and lower houses of parliament approved the coalition, which is an alliance of pro-EU centrist parties, and excludes the pro-Russian far right, which has recently gained in strength in Romania. Prime Minister Ilie Bolojan's centrist National Liberal Party (PNL) is joined by the Social Democrats (PSD), the liberal-conservative Save Romania Union (USR), the Democratic Alliance of Hungarians in Romania (UDMR/RMDSZ) and parties of other ethnic groups. According to the coalition agreement, the PNL and PSD will alternate in holding the prime minister's office, with Bolojan serving until April 2027, followed by a politician from the PSD until the end of the legislative period in December 2028. Bolojan served as caretaker president between February and May this year. He had earlier earned a reputation as a determined reformer as head of a regional council in the west of the country. (DPA)
Straits Times
5 days ago
- Business
- Straits Times
Romania's broad coalition government wins parliament confidence vote
Romania's designated Prime Minister Ilie Bolojan delivers a speech at the start of a joint parliamentary session, ahead of a vote of confidence in his coalition, in Bucharest, Romania, June 23, 2025. Inquam Photos/George Calin via REUTERS Romania's designated Prime Minister Ilie Bolojan delivers a speech at the start of a joint parliamentary session, ahead of a vote of confidence in his coalition, in Bucharest, Romania, June 23, 2025. Inquam Photos/George Calin via REUTERS BUCHAREST - Liberal Prime Minister Ilie Bolojan won a parliamentary confidence vote on Monday, ending months of political deadlock with a coalition government that aims to lower the EU's highest budget deficit to avoid losing its investment grade credit rating. The European Union and NATO state has been rocked by political instability in the wake of a presidential election which was canceled in December and re-run in May, with market turmoil boosting borrowing costs and crashing the leu currency. Bolojan's nomination to head a broad pro-European coalition government by centrist President Nicusor Dan, who ultimately won the divisive election at the detriment of the far right, comes after a month of political wrangling over the fiscal measures needed to lower the deficit. While the coalition will have broad support - around 67% of parliament, all but three hard-right groupings - its endurance will depend on unpopular tax hikes and whether the four parties enforce agreed cuts to state spending. "Some of these decisions will not be popular," Bolojan told lawmakers before the vote. "But we must take into account that without the measures Romania would enter decisively into an area of fiscal uncertainty and risk losing touch with European development and higher costs for people and companies." Finance Minister Alexandru Lazare said the government will discuss all proposed measures with the European Commission before approving them from August, adding a mix of spending cuts and tax hikes were needed to restore credibility. The government plans to keep the main value added tax - which Brussels, ratings agencies and analysts said should be raised to lower the deficit - at 19% for now, while two lower 5% and 9% rates will be consolidated in a single 9% one. The government aims to introduce a temporary tax on banks' "excessive profit" from 2026, and introduce new levies on gains from crypto currencies and social media platforms. About a fifth of public sector jobs will be cut. Higher excise duties and property taxes, an increased dividend tax, taxing pensions higher than 4000 lei ($915) monthly and listing minority stakes in state companies on the bourse are among the proposed measures. The government includes Bolojan's Liberal Party, centre-left Social Democrats, centre-right Save Romania Union and ethnic Hungarian party UDMR, with the four parties also backed by national minorities in parliament. The leaders of the four parties agreed to rotate prime ministers before a 2028 parliamentary election, with Bolojan swapping with a leftist Social Democrat in April 2027. The Social Democrats are Romania's largest party and a ruling majority cannot be achieved without them, but the PM rotation could be a destabilizing step as policies and positions are reassessed. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
5 days ago
- Business
- The Star
Romania's broad coalition government wins parliament confidence vote
FILE PHOTO: Romania's Ilie Bolojan walks to attend a European Union summit in Brussels, Belgium March 20, 2025. REUTERS/Yves Herman/File Photo BUCHAREST (Reuters) -Liberal Prime Minister Ilie Bolojan won a parliamentary confidence vote on Monday, ending months of political deadlock with a coalition government that aims to lower the EU's highest budget deficit to avoid losing its investment grade credit rating. The European Union and NATO state has been rocked by political instability in the wake of a presidential election which was canceled in December and re-run in May, with market turmoil boosting borrowing costs and crashing the leu currency. Bolojan's nomination to head a broad pro-European coalition government by centrist President Nicusor Dan, who ultimately won the divisive election at the detriment of the far right, comes after a month of political wrangling over the fiscal measures needed to lower the deficit. While the coalition will have broad support - around 67% of parliament, all but three hard-right groupings - its endurance will depend on unpopular tax hikes and whether the four parties enforce agreed cuts to state spending. "Some of these decisions will not be popular," Bolojan told lawmakers before the vote. "But we must take into account that without the measures Romania would enter decisively into an area of fiscal uncertainty and risk losing touch with European development and higher costs for people and companies." Finance Minister Alexandru Lazare said the government will discuss all proposed measures with the European Commission before approving them from August, adding a mix of spending cuts and tax hikes were needed to restore credibility. The government plans to keep the main value added tax - which Brussels, ratings agencies and analysts said should be raised to lower the deficit - at 19% for now, while two lower 5% and 9% rates will be consolidated in a single 9% one. The government aims to introduce a temporary tax on banks' "excessive profit" from 2026, and introduce new levies on gains from crypto currencies and social media platforms. About a fifth of public sector jobs will be cut. Higher excise duties and property taxes, an increased dividend tax, taxing pensions higher than 4000 lei ($915) monthly and listing minority stakes in state companies on the bourse are among the proposed measures. The government includes Bolojan's Liberal Party, centre-left Social Democrats, centre-right Save Romania Union and ethnic Hungarian party UDMR, with the four parties also backed by national minorities in parliament. The leaders of the four parties agreed to rotate prime ministers before a 2028 parliamentary election, with Bolojan swapping with a leftist Social Democrat in April 2027. The Social Democrats are Romania's largest party and a ruling majority cannot be achieved without them, but the PM rotation could be a destabilizing step as policies and positions are reassessed. ($1 = 4.3738 lei) (Reporting by Luiza Ilie; Editing by Aidan Lewis and Toby Chopra)
