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Bolojan’s response, asked when he will stop with tax increases and revenue cuts

Prime Minister Ilie Bolojan was asked, on Friday, when he will stop with tax increases and revenue cuts."We should stop as soon as possible", Bolojan answered, to Radio Europa Liberă.
Bolojan's response, asked when he will stop with tax increases and revenue cuts
Foto: Alexandru Dobre/Mediafax Foto
Petru Mazilu
14 nov. 2025, 14:58, English

„But before saying what else we need to do and when we could do this, we need to emphasize some realities to Romanians. Because we have borrowed too quickly in these years, we have increased Romania’s debt level, our rating has decreased, therefore the trust that the markets have in Romania, which has generated the increase in interest rates on the loans that Romania has contracted”, the prime minister added.

Romania pays higher interest rates than other countries in the region

Bolojan says that Romania pays higher interest rates than other countries in the region: “Because of this, for example, this year and next year, the value of the interest that Romania has paid and will pay is between 11 billion euros and 12 billion euros next year, so 3% of Romania’s GDP. When we discuss in terms of a deficit of 8.4% this year, or next year, a little over 6%, half will be interest expenses.”

In the opinion of the Prime Minister, „any rational person understands that when you have such interest rates, you have to work, increase your income, collecting the taxes that you have already established, we no longer need to raise taxes, we only need to collect the ones that we have established, reducing your expenses, eliminating waste, which we must continue to do, this is what we still have to do, and obviously, balancing budgets, ensuring money for investments, in such a way as to support the Romanian economy, starting next year, we must reduce our pressure on these deficits”.

Only in this way will confidence in Romania increase and its rating improve, leading to it taking out loans with much lower interest rates.

The decrease in percentage points in the interest rates that Romania pays is not enough, „because, even if we have a lower level of indebtedness as a country than the average of countries in Europe, we have 60%, it is increasing compared to 80%.”