Leaders of the governing coalition met at Victoria Palace to discuss the 2026 budget, how funds will be allocated between ministries, and investment plans. They reached a unanimous agreement and established the next steps.
Coalition Agreement Reached
The coalition announced it has reached an agreement on measures to be approved in the coming period. In a press release, the coalition outlined four key areas of consensus.
Regarding the reform of central and local administration, the coalition decided to adopt a package aimed at reducing institutional overlap and streamlining internal processes. The goal of the reform is to improve the quality of public administration and reduce state costs.
The Ministry of Finance and the Ministry of Economy will finalize the necessary technical details so that the economic recovery package can be submitted for government approval simultaneously with the package dedicated to central and local administration, according to the statement.
Property Tax Reductions for Buildings Over 50 and 100 Years Old
The coalition agreed to introduce tax measures regarding built heritage:
- a) A 25% reduction in tax for buildings over 100 years old
- b) A 15% reduction in tax for buildings between 50 and 100 years old
Tax Reduction Rates for Buildings and Cars for People with Disabilities
The coalition unanimously established tax reduction rates for buildings and cars for people with severe and accentuated disabilities. People with severe disabilities will benefit from a 50% reduction, whereas those with accentuated disabilities will benefit from a 25% reduction, with the introduction of monetary limits.
the Ministry of Finance was tasked with drafting the legal text to accommodate administrative adjustments for those who have already paid.
Finance Minister Alexandru Nazare presented the coalition leaders with a preliminary draft of the budget, based on data provided by each ministry. Representatives of the governing parties requested the draft for analysis.
Another coalition meeting is possible on Wednesday, before Prime Minister Bolojan travels to Brussels to meet with European Commission President Ursula von der Leyen.
After receiving dozens of pages of amendments and observations from the Ministry of Economy at the end of last week, coalition leaders decided not to modify the draft economic recovery measures.
Economy Minister Irineu Darău requested, among other things, to manage part of the state aid scheme from the recovery package, instead of the Ministry of Finance, which opposed this request, according to information from HotNews.
Tomorrow, after the two projects – the public administration reform and the economic recovery package – receive approvals from the Social Economic Council and the Legislative Council, a government meeting will be held to adopt the two Emergency Ordinances, sources attending the coalition meeting said.
At the end of last week, Ilie Bolojan stated in an interview with TVR that discussions about the budget should be finalized by the end of this week.
“By the end of next week, we should be able to prepare this budget, finalize all discussions regarding main allocations, investment projects, and other budgetary aspects, and in preparation for the budget, beforehand, we should adopt – and I believe we will – at the beginning of next week, the package for administration and the economic recovery package,” Ilie Bolojan said on TVR 1.
Earlier this year, Prime Minister Bolojan discussed the budget project with all ministers, the Governor of the National Bank, and President Nicușor Dan. Sorin Grindeanu also discussed “major investment projects in each area” with PSD ministers in the Bolojan cabinet.
last week coalition leaders met with President Nicușor Dan at the Cotroceni Palace to discuss the budget. At that time, the president “took notes on absolutely everything,” according to sources who attended the meeting.
PSD Sets Conditions for Budget Approval
For the budget project to reach Parliament for debate, amendment, and adoption, it must pass the test of the governing coalition. The PSD has already announced that if the future 2026 budget does not include the solidarity measures desired by the Social Democrats, they will not vote for it.
This involves a package of financial aid “in two equal installments, April and December, for 2.8 million people”:
- 1,000 lei for 1.24 million pensioners with incomes below 1,500 lei;
- 800 lei for 497,000 pensioners with incomes between 1,501-2,000 lei;
- 600 lei for 612,000 pensioners with incomes between 2,001- 3,000 lei.
The PSD leadership decided to propose the package to the coalition at a meeting on February 1st held at Vila Lac.
Delayed Budget Criticized Even by Nicușor Dan
The Bolojan government entered 2026 without finalizing the national budget, as is customary. It was initially supposed to be adopted at the end of January or beginning of February. However, it was postponed.
The budget should be adopted after the public administration reform, so that the measures in the reform package can be implemented. The reform, which has been negotiated for months in the coalition, is expected to be adopted this week, if It’s approved by all ministries.
At the end of last year, President Nicușor Dan stated that the adoption of the budget is an emergency for Romania:
“It’s not good that it’s December 17th and we don’t even have the budget project. It should have been at the end of December. The urgency for the coalition is to pass the 2026 budget and the 2026 budget, as far as I know, as far as I trust, will enter a deficit, perhaps slightly over 6, but in any case will demonstrate to partners – and especially the financial market – that Romania is serious and respects its commitments regarding the deficit,” the president said at the time.
