Romania's Austerity Debate: Parties Clash Over Tax Hikes

Romania's Political Parties Clash Over Austerity Measures Romania is currently facing intense political debate over a series of proposed austerity measures. The ruling National Liberal Party (PNL), along with the opposition Social Democratic Party (PSD) and the Union Save Romania (USR), are locked in negotiations regarding significant tax increases. The PNL has proposed raising the tax on dividends to 16% and the corporate profit tax to 19%, while also introducing a 10% contribution to healthcare for pensions exceeding 2,500 RON. 'These measures are necessary to address the budget deficit,' stated a PNL representative in the video. However, the PSD opposes the general increase in VAT, and has proposed a 5% VAT reduction on medicines and food as a compromise. 'We will only accept a VAT increase if it's coupled with significant reductions in other areas,' a PSD representative stated. USR has suggested raising the VAT on the HoReCa sector to 19%, along with the listing and privatization of several state-owned companies, alongside a VAT increase to 21% and an increase of the reduced VAT rate to 12%. The parties are expected to reach a conclusion by the following day. The outcome of these negotiations will significantly impact the Romanian economy and its citizens.