Politics

The Employers' Federation of Energy criticizes the Ordinance – train / “These initiatives violate the principles of good governance”

The measures proposed in the draft Ordinance – tram were developed without a transparent consultation, without sufficient time for analysis and without an authentic social dialogue with the representatives of the economic environment, the Energy Employers' Federation transmitted, on Tuesday, through a press release. This reaction takes place in the context of the draft providing that the additional tax in the oil and natural gas sectors (ICAS) is extended by one year, to be eliminated from 2027. According to the current provisions, the tax was valid until December 31, 2025.

The Federation believes that these initiatives violate the principles of good governance, ignore the recent promises made by the Government in relation to employers and risk distorting competition, discouraging investment and affecting the operation of a strategic sector for the economy.

At the same time, the maintenance of additional taxes in the oil and gas sector and the introduction of new fiscal measures will have negative effects on the entire energy market.

The additional tax “undermines the industry's ability to support long-term investment”

The Employers' Federation of Energy believes that overcharging seriously affects strategic economic sectors. These decisions deepen fiscal instability and undermine the industry's ability to sustain long-term investment, the Federation also points out.

In its opinion, unpredictable fiscal policies, adopted without consultation and without a coherent vision, weaken economic competitiveness and endanger energy security.

And ensuring energy security and the transition to green technologies require massive investments, impossible to achieve in an unstable fiscal climate. Maintaining a predictable fiscal framework is not a formal request of the industry, but an essential condition for sustainable economic development.

The federation says that the energy industry contributed 48.8 billion lei to the general consolidated budget in 2022, a 62% increase compared to the previous year.

FPE asks the Government for real consultation

The Federation explicitly requests a real, substantial and constant social dialogue, in which the positions of the industry are heard and integrated into the decision-making process. Adequate time is needed for analysis, impact assessments and genuine consultations, not decisions taken in a rush without a sound economic foundation.

The Federation also reminds that any significant fiscal change must be announced with a minimum term of 6 months before application and integrated into a multi-year calendar of fiscal policies, which would provide the economic environment with the predictability necessary for investment planning and long-term development.

In the absence of these principles, Romania risks losing strategic investments, jobs and development opportunities in a vital sector for the economy, states the Energy Employers' Federation.

The Ministry of Finance put, on Monday evening, in public debate, the so-called Ordinance – train with a series of fiscal provisions, with direct effects on salaries, taxes, pensions, excises, local finances, state companies and social programs starting from January 1, 2026. The government could approve the project in Tuesday's meeting.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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