In a press conference, Alexandru Nazare stated that the decision to increase VAT was the most difficult one he made during his term, emphasizing that he did not act alone. He described this measure as painful but essential to avoid losing the credit rating, which would have had devastating effects for Romanians.
Nazare explained that the main purpose of increasing VAT was not to generate revenue, but to regain the trust of the European Commission. He mentioned that, following this decision, the budget execution showed improvements, with a significantly lower deficit compared to the previous year. He also recalled that, in the context of the presidential elections in 2025, Nicușor Dan promised that VAT would not increase; however, after taking office, the new government implemented this measure as part of a package to reduce the budget deficit. The increase of VAT to 21% and the taxation of large pensions were among the first measures adopted.
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