Bolojan '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
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 ' profits, consumption and foreign investment.