Romania Pushes Austerity Plan to Cut EU’s Widest Budget Gap

Romania’s premier unveiled a package of tax hikes and wage freezes that aims to cut the budget deficit to below 6% of GDP next year and avoid a credit rating downgrade to junk.

The Black Sea nation is recovering from months of political turmoil, with the new pro-European government making the budget fix its top priority. The fiscal plan includes an increase in the value-added tax, higher excise duties and a freeze on wages and pensions in the public sector through the end of 2026, said Prime Minister Ilie Bolojan.