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Romania’s government raised the standard VAT rate from 19% to 21% and increased excise duties on fuel, alcohol, and cigarettes as part of a fiscal package to curb the budget deficit.
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Public-sector wages and pensions will be frozen through 2025 and 2026 to avoid default and maintain government spending capacity amid a 9.3% GDP deficit in 2024.
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The government aims to restore investor confidence and meet EU targets after failing to submit a credible fiscal plan, with further fiscal adjustments expected soon.
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