Romania Faces Eu Pressure to Raise Taxes Amidst Funding Suspension Threat

European authorities are urging Romania to implement tax reforms, potentially including tax increases, to reduce its budget deficit. Failure to comply could lead to the suspension of European funds, including those from the National Recovery and Resilience Plan (NRRP) and cohesion policy, according to Digi 24. The European Commission is requesting Romania to adjust taxation by increasing taxes and improving tax collection. Romania risks losing access to €45 billion in cohesion funds for 2021-2027 and €19 billion from the NRRP. This situation could negatively impact Romania's international image and investor confidence. Potential tax increases include raising the VAT to 21%, increasing the dividend tax above 10%, and raising property and income taxes. Road taxes (roviniete) could increase by 40% for cars and sixfold for trucks. The interim government hopes to negotiate an extension until a fully empowered government is in place. Marcel Boloș, Romania's Minister of Investments and European Projects, emphasized the importance of clarifying the tax reform to continue implementing the NRRP. Romania ranks 10th in a Wall-Street.ro ranking of countries at risk of bankruptcy.