Eugen Tomac presented his government program: he continues austerity, but promises support for the business environment
Prime Minister-designate Eugen Tomac declared, in an interview with Politico, that the future government will continue the measures to reduce the budget deficit, but excludes the introduction of new labor taxes. At the same time, he promises support for the private sector and the reduction of bureaucracy.
Asked how he intends to reassure financial markets and rating agencies, Tomac told the European newspaper that Romania will meet its deficit reduction targets, but that “there will be no new taxes on labor or productive capital.”
He specified that the government will pursue in parallel the completion of the PNRR, the implementation of the SAFE facility and the accession to the OECD, which he considers “three external anchors” essential for Romania's economic credibility.
“By delivering on our promises, according to a timetable that everyone can verify. The 2026 budget ends with a deficit of 6.2%, down from 7.6% in 2025. Romania has committed to reaching 5.1% in 2027. This trajectory is not negotiable. There will be no new taxes on labor or productive capital. Instead, we will continue to rebuild the spending side.”
In parallel, we will restore the institutionalized and permanent dialogue with the business community, because the chaotic fiscal policies after 2022 cost us credibility and we will not repeat this. For the agencies, three external anchors matter: the completion of the PNRR (funding of the EU recovery and resilience plan in the context of Covid), the SAFE facility (which secures the EU defense loan program) and the accession to the Organization for Economic Cooperation and Development. Achieving these three objectives on time is, frankly, more important for our spreads than any rhetorical commitment I could make in this interview”, said Eugen Tomac.
“The state stops fighting against entrepreneurs”
Asked how he will differ from the former government, the designated prime minister states that he will keep the same deficit reduction trajectory, but that he will change the reporting of the state to the business environment.
“As far as the fiscal trajectory and the European anchors are concerned, there is full continuity. The way to reduce the deficit is the same. These are not Bolojan's or Tomac's priorities. These are national objectives and priorities for Romania,” he declared.
According to Tomac, the “difference” will consist in an “unequivocal position in favor of the private sector”.
“The state stops fighting against entrepreneurs. We will carry out a permanent institutional consultation with the business environment, we will publish a public inventory of all the authorizations needed for any commercial activity and we will eliminate those that have no purpose,” he said.
He added that he will speed up digitization and reduce bureaucracy and that he sees entrepreneurship as a development tool including for rural areas.
“There is no room for a new fiscal expansion”
Asked how he will keep PSD's support for deficit reduction, Tomac says he will collaborate with all pro-European forces that “accept budget arithmetic”.
“The honest discussion with the PSD is the same discussion I will have with any other party: there is no room for a new fiscal expansion,” he declared.
“This does not mean that we forget about vulnerable citizens or pensioners. The few resources that we can save to be fiscally responsible will go in this direction (…) At the same time, we must encourage entrepreneurship and the private sector. That is where wealth is produced, and the more wealth we have, the more we can redistribute to the less well-off”, said Tomac.
About the extreme right: “Tax restriction perceived as unfair fuels extremism”
Tomac warns that austerity measures considered unfair may contribute to the growth of extremist groups.
“The risk is real and I take it seriously. Fiscal restriction perceived as unfair – restriction that affects first the citizen and only then the privileged – fuels extremism,” he said.
Asked if he would collaborate with the AUR to adopt some laws, Tomac replied that he respects the citizens' vote, but “I will never accept and understand political parties that act against Romania's national interest, and the AUR has shown such behavior on multiple occasions.”
Demand the publication of the report on the annulment of the 2024 elections
On canceling the 2024 presidential election, Tomac says the full report on the decision should be made public.
“I believe that the facts are clear. A candidate violated the Romanian electoral law and benefited from a significant advantage over the other candidates. Of course, citizens have the right to know and understand the reasoning behind major institutional decisions. I believe that the full report on the annulment of the elections, once published, will contribute to clarifying these issues,” he declared.
The designated prime minister also said that he shares the opinion of President Nicușor Dan according to which corruption represents a risk for national security and that more transparency, digitization and responsibility are needed in public institutions.
At the same time, Tomac confirmed that he will give up his mandate as a member of the European Parliament if the Parliament gives him the investiture vote.
“The two positions are incompatible. If I am confirmed by the parliament as prime minister, I will devote all my attention and energy to leading the government,” he declared.
