New Romanian Government Defends Tax Rise Plan, Survives No-Confidence Vote

The coalition now plans to press ahead with unpopular austerity measures in a bid to rein in the country’s deficit.

Romanian Prime Minister Ilie Bolojan delivers a speech in the Palace of the Parliament in Bucharest on June 23, 2025. Photo by DANIEL MIHAILESCU/AFP via Getty Images

Romania’s three-week-old government survived a no-confidence vote on July 14, allowing it to push through tax hikes in an effort to lower the nation’s budget deficit.

Prime Minister Ilie Bolojan’s coalition has fast-tracked an increase in value-added tax (VAT)—akin to U.S. sales tax—excise duties, and other levies through Parliament to take effect in August.