The delay in reaching a political agreement to form a stable government willing to assume the economic and fiscal measures Romania urgently needs increases concern within the business community, generates societal tensions, and sends negative signals to investors, financial partners, and rating agencies.
In this context, on behalf of its over 600 member companies active across 32 sectors of the economy, AmCham Romania calls for alignment around the solutions the country urgently requires. The business community wants Romania’s interests and well-being to take precedence over political agendas, and for the solutions adopted not to exacerbate societal divisions. The stakes of the negotiations must go beyond electoral logic and personal egos.
From the business community’s perspective, it is clear that Romania can no longer afford to postpone difficult decisions or delay the implementation of policies that address both immediate challenges and a coherent long-term economic vision. The European Commission expects a credible plan from Romania at the July 8 meeting of the Economic and Financial Affairs Council (ECOFIN), and Fitch Ratings has already expressed concern ahead of its upcoming rating review on August 15.
Against the backdrop of significant risks threatening the economy, the only viable option is for Romania to preserve what has proven effective and avoid measures that could worsen the situation. Under no circumstances can Romania afford a downgrade to junk status, payment default, a freeze on EU funds, or a slowdown of the economy through counterproductive policies.
From this perspective, and to unlock the dialogue on fiscal and budgetary issues, AmCham Romania reaffirms its support for the flat tax as the most suitable solution to overcome the current challenge, along with the urgent restructuring of public expenditures. A significant reduction in public spending and a clear prioritization of budget allocations are the foundation for a sustainable recovery. There is no viable alternative without this step, in addition to implementing real and courageous measures to reduce tax evasion and the VAT gap.
The benefits the flat tax has generated for Romania’s economic growth are indisputable: the significant expansion of the middle class, increased labor market participation, reduction of undeclared work, and the acceleration of real economic convergence. The flat tax remains one of Romania’s few competitive advantages in the region in the race to retain and attract investment. It is a simple, transparent, and predictable system that is easy to administer both for the state and taxpayers.
AmCham Romania supports a generalized flat tax for all income categories, eliminating loopholes and exemptions to enable higher collection and allow a focus on genuine structural reforms. Social equity, a legitimate goal for public authorities, can be effectively ensured under a generalized flat tax system with the application of targeted deductions for vulnerable groups.
By contrast, the introduction of a progressive tax system amid fiscal and macroeconomic uncertainty would likely amplify imbalances. Countries that have adopted progressive taxation have done so only after lengthy transitions, serious technical preparation, and extensive taxpayer information campaigns. Romania is not yet in such a position.
In the current context, marked by the urgent need to correct an excessive budget deficit within a short timeframe, progressive taxation is not a viable solution. It will not lead to improved collection or address the root causes of the deficit — it merely diverts attention from the essential reforms.
The upcoming package of economic and fiscal measures must consider not only short-term revenue needs but also the longer-term trajectory of the economy. Without an attractive framework for investment and a performing private sector, potential tax increases will not yield more revenue but risk suffocating and contracting the economy.
About AmCham România
The American Chamber of Commerce in Romania – AmCham Romania is the most representative business association in Romania, recognized for facilitating a consistent public-private dialogue on the economic agenda and for contributing to the strengthening of economic relations between Romania and the United States.
With over 30 years of presence in Romania, AmCham currently brings together more than 600 American, international, and Romanian companies with cumulative investments of over USD 30 billion in Romania.
AmCham member companies collectively provide over 250,000 jobs and generate a combined turnover of more than EUR 65 billion. Every additional EUR 1 million in turnover creates another 10 jobs in the economy.
AmCham Romania members operate in 32 economic sectors, which enables AmCham to be involved in promoting economic priorities for many fields of activity through specialized working groups, such as: Capital Markets and Financial Services, Corporate Governance, Competition and State Aid, Energy, Education, Digital Economy, Data Protection, Taxation, Environment, Labor Market, Health, European Funds, Public Procurement and Public-Private Partnership, Real Estate, Commercial Legislation, and Tourism.
AmCham Romania is an accredited member of the U.S. Chamber of Commerce and is part of the European network of American Chambers of Commerce.
For more details, we invite you to visit us at http://www.amcham.roand follow @AmChamRomania.
Contact: Andreea Roman, Communication Manager – [email protected] T: 0748 113 665
AmCham Romania Board of Directors 2025
President:
• Vlad Boeriu, Tax & Legal Partner-in-Charge, Deloitte Romania
Vice-Presidents:
• Cerasela Baiculescu, Country General Manager, IBM Romania & Moldova
• Gabriela Popescu, Corporate, External and Legal Affairs Lead, Central Europe, Microsoft
Treasurer:
• Luminița Runcan, Senior Advisor to the President, Supervisory Board Chair BTAM, Banca Transilvania
Board Members at large:
• Nicoleta Forfotă, Corporate Bank Head, Citibank Romania
• Cornel Cărămizaru, General Manager, Coca-Cola HBC Romania
• Claudia Sofianu, Partner, Tax & Law Department, People Advisory Services Leader, EY Romania
• Elisabeta Moraru, Country Director, Google Bulgaria, Hungary, Moldova, and Romania
• Georgiana Coșoveanu, Director Governmental Affairs & Policy, Executive Member of Romania Leadership Team, Johnson & Johnson Romania
• Ciprian Lăduncă, Managing Partner, LCL Advisory
• Daniela Nemoianu, Managing Partner, Nemoianu Attorneys at Law
• Ionuț Sas, SVP Finance, UiPath
• Nedim Baytorun, CEO, Vodafone Romania
Director Executiv
• Letiția Pupăzeanu
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