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Kelemen Hunor: State reform is a diet

On Monday, after signing the coalition agreement, UDMR president Kelemen Hunor commented on the structure of the future government, the fiscal adjustments planned for autumn, the maintenance of the general VAT rate, and pension taxation.
Kelemen Hunor: State reform is a diet
Andreea Tobias
23 iun. 2025, 13:48, English

Regarding state reform, Kelemen Hunor stated, „State reform, as I have mentioned in general terms, is like a slimming cure. There are many oversized institutions with significant expenses, and on the other hand, numerous institutions do not adequately respond to the needs of citizens. This is a real problem because it leads to public dissatisfaction.”

When discussing the inclusion of five deputy prime ministers in the future government, the UDMR president remarked, „If this government is effective, this structure will certainly be justified. However, if the government is inefficient and the decisions are ineffective, then it will not be justified. But before we embark on this path, I do not want to make any judgments.”

On the topic of new fiscal adjustments, Hunor mentioned that they would be implemented in July and August and would take effect in October. He confirmed the joint decision to maintain the general VAT rate at 19% while introducing a reduced rate of 9% for food, medicines, firewood, energy, and, at his request, books.

Regarding pension taxation, Hunor explained, „Initially, there was a proposal to set the tax threshold at 3,000, but we ultimately agreed on a value of 4,000. Anything above 4,000 will likely be proposed by the finance ministry at a rate of 10%. That’s where we stopped, but ultimately, the decision must be made by the Prime Minister and the Finance Minister.”