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

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

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 Monday, 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 taxexcise duties, and other levies through parliament to take effect in August.

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