Premier Ilie Bolojan: SOEs are controlled. Companies that have been making losses for years should simply be shut down.

” Money is like muck, not good except it be spread” .

Ilie Bolojan declared Tuesday night that all large state-owned companies will be controlled. The prime minister added that companies that have been making losses for years will have to be closed or put under private management so that they are no longer “at the mercy of people who have been ridiculing them for years.”
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Companies that are clearly visible in economic analyses, have large assets, do not generate revenue, have negative capital, have been making losses for years, should simply be closed down because they are in fact nothing more than a black hole for the state.

Wave of price hikes from Aug. 1:
How much will a decent life cost in Romania? The new fiscal measures adopted by the government will put direct pressure on household budgets. Economists warn that the impact will be significant for all categories of consumers, but especially for low- and middle-income families. Starting August 1, 2025, VAT will change as follows: the standard rate will rise from 19% to 21%, and the only reduced rate will be 11%. This applies to medicine, food, textbooks, firewood, water and sewage, as well as admission to museums or other cultural institutions. Starting next month, fuel and alcoholic beverages will also become more expensive, following a 10% excise tax increase. It is also facing an increase in electricity prices following liberalization last July 1. Rates are now almost twice the maximum prices. Economist Adrian Negrescu estimates that given the wave of price increases, a family with two children will need at least 12,000 lei net per month to live decently. “Until now, the National Institute of Statistics told us that a family with two children needs about 10,000 lei net per month for a decent income, this amount is likely to rise to 12,000 lei, as everything around us becomes more expensive, from the electricity bill to food, transportation, clothes, shoes… everything becomes more expensive every day.” Limited price increases are inevitable, but the Romanian government’s rather drastic budget cuts will positively affect the increases. Economists do need to consider the prices in light of the unacceptable budget deficit, and thus we are talking about a temporary situation.

What did the president say?

  • President Nicuşor Dan stated that Romania has a concrete future right after the correction period is over.
  • “I want to convey to you my conviction that Romania has a future, not in 20 to 30 years, but in two to three years, once we get past this correction period. Romania has a dynamic, competitive private sector, Romania has the chance to join the OECD and thus attract much more foreign investment by the end of next year. So Romania has a concrete future”,