PSD economic program: 5% economic growth in 5 years, reducing regional gaps, fiscal loans for investments started from zero

The Economic Program transmitted on Thursday by the PSD proposes to return to an economic growth of over 3% in 3 years and 5% in 5 years, the reduction of the commercial deficit from 9.5% of GDP (2025) to below 8% of GDP in maximum 3 years but also the reduction of regional gaps by 15% compared to the present situation.

The document is rather a list of intentions, without being clear how the targets proposed there will be made. For example, how do we generate economic growth: by consumption (supplying imports, how is it today?). Social Democrats propose a fiscal loan for investments started from scratch (Greenfield): massive deductions from the profit tax for certain expenses.

The main measures:

• In addition to the guarantees offered by the state for the loans taken by the companies, the PSD comes with the Polish model: additional deduction from the taxable basis for research and development expenses, 100% or 200%. Basically, eligible expenses are decreased twice: once as usual costs, the second time as a special deduction. It results in a total tax deduction that can reach 150 or 200%. At this time,

• Also, the PSD promises the support of new investments of at least 20 million euros in the food, pharmaceutical, chemical, defense, metal constructions, manufacture of machines and equipment (the facilities offered are: tax credit: exemption from the tax on profit for a period of 5 years, land with utilities at the gate concession and recovery in technology and recovery)

• Also, Social Democrats talk about supporting new investments of over 20 million euros in the processing of non -energy critical minerals: graphite, aluminum, copper, magnesium, rare lands, etc.

• In PSD agriculture, PSD promises to relaunch the Rabla program for tractors and agricultural equipment, but also to support the development of the Romanian food industry to reduce food imports (pron fiscal credit: exemption from profit tax up to 50% of investment value, state guarantees for bank loans and offering land and utilities for new investments)
• Creating 120,000 jobs

However, the document presents any analysis of the current state of fact in the economy, nor the way we will reach the figures announced by the social-democrats, nor the source of the money with which the measures passed there would be financed.

For now, the National Commission for Strategy and Forecast has just published the latest estimates that show that in 2025 the growth will be 0.6%, in 2028 (over 3 years) of 2.4%.

Also, the number of employees will increase from 6.7 million in 2025 to 6.9 million in the next 3 years.