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Romania's 2026 reform aims to cut public jobs and raise taxes to reduce deficit, but delays and instability threaten growth.
Romania's government aims to pass public administration reform by late January 2026, targeting 10% cuts in central agency staffing and 30% in local administration, to save 3.5–4.5 billion RON.
The 2026 budget, to be approved in February, projects a deficit of 6.0%–6.5% of GDP, down from 8.4% in 2025, supported by frozen public wages, a VAT increase to 21%, and tax hikes.
Experts warn further VAT increases may be needed, while delays in reform and political tensions within the ruling coalition threaten fiscal credibility.
Despite modest growth forecasts of 1.1%–1.4%, weak reforms and continued tax burdens on businesses risk slowing investment and growth.
The justice system faces turmoil over a contested magistrates’ pension law and ongoing Constitutional Court review, while protests and a documentary alleging judicial corruption have fueled calls for reform.
Political instability and weak governance remain key challenges.
La reforma de 2026 de Rumanía tiene como objetivo reducir los empleos públicos y aumentar los impuestos para reducir el déficit, pero los retrasos y la inestabilidad amenazan el crecimiento.