2025 Fiscal Package 2: Major Changes Planned by Romania’s Government

The Romanian government is finalising Fiscal Package 2, which is set to be implemented from autumn 2025. It includes structural reforms, public-spending cuts and stringent tax measures, all intended to keep the budget deficit under control and ensure the country’s financial sustainability.

Implementation timeline

The package is scheduled to be adopted during the extraordinary parliamentary session in August, following the budget revision. The measures will take effect gradually, starting on 1 October 2025.

Key fiscal and structural measures

1. Downsizing the administrative apparatus

• Elimination of more than 6,000 positions in the offices of public officials and in administrative roles.
• A 20% reduction in staff across local and central public administration.
• Abolition of the deputy mayor position in localities with fewer than 1,500 residents.
• A ban on combining a pension with a salary in the public sector.

2. Reform of state-owned companies

• Elimination of multiple mandates on boards of directors.
• Introduction of clear, auditable performance indicators for managers.
• Digitalisation and depoliticisation of recruitment through national ANFP examinations and public platforms.

3. Changes to the special-pensions system

• Raising the retirement age to 60 for all categories receiving special pensions.
• Reducing the pension calculation rate from 80% to 65% of average gross income.
• Reducing special pensions for magistrates, pilots and employees of the Court of Accounts.

4. New taxes and levies

• A progressive income tax on annual salaries above 200,000 lei.
• An increase in the dividend tax from 10% to 16% (from 2026).
• A 4% tax on turnover for banks with a market share > 0.2%.
• Higher excise duties on tobacco and alcohol from October 2025.

5. Other structural measures

• Depoliticisation of ANAF, Customs and the Anti-Fraud Directorate, with recruitment through national competitive examinations.
• Introduction of strict penalties for tax evasion and fraud.
• Higher traffic fines, with penalties increasing according to the payment deadline.

Goal: reducing the deficit and reforming the public-budget system

The executive estimates annual savings of more than 12 billion lei from applying this package. The measures are also needed for Romania to meet the milestones in its National Recovery and Resilience Plan (PNRR) and remain on track with its European commitments.

For further information, see Tax changes in Romania: the 25-leu levy on parcels from outside the EU, an article that examines an aspect directly related to this subject.

Expected reactions and effects

Economists say these measures are tough but necessary. Trade unions, however, warn of the risk of protests, while the business community is calling for a period of fiscal adjustment and transparency in the implementation of the rules.

“Reform is inevitable. We cannot continue to sustain an oversized and inefficient system without jeopardising the country’s financial stability.” — Finance Minister, 7 August 2025

Fiscal Package 2 for 2025 represents a critical stage in Romania’s economic recovery. If implemented responsibly and consistently, it could bring efficiency, transparency and sustainability to the public sector.