The government led by Ilie Bolojan raised taxes in 2025 because Romania had the largest budget deficit in the European Union and risked falling below the lowest investment-grade rating. Higher taxes reduced the deficit, but they also reduced companies and #39; profits, consumption and foreign investment.
Bolojan and #39;s Fiscal Policy Had Serious Justifications: Higher Taxes Reduced the Deficit and the Risk of a Credit Downgrade, but Came at the Cost of Foreign Investment
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The government led by Ilie Bolojan raised taxes in 2025 because Romania had the largest budget deficit in the European Union and risked falling below the lowest investment-grade rating. Higher taxes reduced the deficit, but they also reduced companies and #39; profits, consumption and foreign investment.
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