Romania's 35 Billion Euro Deficit: Spending Cuts, Not Tax Hikes, Says Expert

Romania Faces 35 Billion Euro Budget Deficit: Expert Urges Spending Cuts, Not Tax Hikes Romania is grappling with a substantial budget deficit, estimated at nearly 35 billion euros. Marius Lulea, a prominent voice in Romanian economic policy, argues that simply raising taxes will not solve the problem. "It's impossible to cover a deficit of almost 35 billion euros through tax increases," Lulea states in a recent video. He advocates for a focus on reducing government spending and improving economic efficiency. Lulea uses the example of VAT (Value Added Tax) collection to illustrate his point. He notes that even under ideal conditions, with 100% VAT collection, the additional revenue would only reach around 3 billion euros, a fraction of the deficit. This highlights the need for a more comprehensive approach to fiscal management. The video has generated considerable online interest, underscoring the public's concern over the financial situation. Lulea's call for fiscal responsibility and spending cuts provides a clear and focused perspective on a complex issue, offering a potential pathway to address Romania's economic challenges.