Presidential Administration: Discussions with coalition leaders were constructive; data show improvement in budget situation

The discussions between Nicusor Dan and the coalition leaders on Tuesday, at Cotroceni Palace, were constructive and the president stressed the importance of maintaining the coalition's unity and continuing the reforms undertaken before the citizens, the Presidential Administration reports.According to the cited source, the head of state "mediated a dialogue necessary to consolidate the country's political and economic stability" and the leaders of the governing parties committed to managing differences of opinion through dialogue and responsibility, in the public interest."Romanians have made sacrifices in recent years, going through crises that they did not cause. I understand the legitimate dissatisfaction of those who were forced, once again, to show solidarity. But today, the data show an improvement in the budgetary situation and we are in a clear process of stabilization," declared the president, quoted in the Cotroceni press release.The Presidential Administration mentions that the Minister of Finance presented during the meeting the most recent data on budget execution, in view of the rectification in the coming period, and "the economic indicators show a positive evolution, which allows the continuation of the governing program without endangering macroeconomic balances"."The President of Romania reaffirmed the support of the presidential institution for essential reforms in all social areas, reforms expected by citizens and assumed by the current parliamentary majority. The governing coalition will continue its activity in its current formula, with the clear objective of implementing the measures provided for in the governing program for which it received the confidence of Parliament," the press release reads. *** The leaders of the governing coalition decided on Tuesday to extend the cap on commercial markups for basic products for another six months, until the end of March 2026, according to media sources. The decision comes after more than two weeks of disputes within the coalition over this issue, following PSD’s persistent calls for an extension, while Prime Minister Ilie Bolojan initially opposed it.   Over the past two weeks, PSD had strongly pushed for the extension of the commercial markup cap on basic products, a measure originally introduced in June 2023 by the government led by Marcel Ciolacu. Prime Minister Ilie Bolojan disagreed, arguing that during the last extension in June 2025, the government had decided it would be the final time the measure would be extended.   The measure capping the commercial markup on basic products was due to expire on September 30, unless extended. The PSD had announced that if the measure was not extended by the Government, it would submit a bill to Parliament to make this happen.   Prime Minister Ilie Bolojan met with representatives of retailers on Friday to discuss capping the commercial markup on basic foods. Retailers conveyed during the meeting that they do not agree with state intervention in the economy, and therefore with capping the commercial markup on food products, the Government stated.   Several voices from the PSD have said that the party does not agree with the interruption of this measure. The Secretary General of the Government, Stefan Radu Oprea (PSD), stated in a Facebook post that the price cap on basic food should be maintained as it has already proven its efficiency, and that abandoning the cap would significantly affect Romanians with low incomes. MP Mihai Fifor claimed that the subject was not discussed in the coalition, and the only discussion was within the cabinet of ministers, and Agriculture Minister Florin Barbu (PSD) opposed it.   Extending the cap would not have an impact on the budget, PSD sources told mass media, as it concerns the commercial mark-up – that is, the trader’s profit. According to the cited sources, if the measure is not extended, this will be reflected in inflation, which will increase by 2-3%. Inflation, measured by the National Institute of Statistics through the Consumer Price Index, rose to almost 10% in August. During the meeting at Cotroceni Palace, Prime Minister Ilie Bolojan also complained that he does not have support for the reforms he proposes and that regarding many decisions that the Executive must make, he is alone.   President Nicusor Dan said after meeting with the leaders of the governing coalition on Tuesday at Cotroceni Palace that it “will continue its activity in its current formula” and asked the governing parties to resolve their differences. “Romanians have made sacrifices in recent years, going through crises that they did not cause,” the head of state added.   At the Cotroceni meeting, the head of state “mediated a necessary dialogue to strengthen the country’s political and economic stability,” the Presidential Administration said in a press release. The discussions were constructive, and the president emphasized the importance of maintaining coalition unity and continuing the reforms pledged to citizens. The leaders of the governing parties committed to managing differences of opinion through dialogue and responsibility, in the public interest, the statement added.   “Romanians have made sacrifices in recent years, facing crises they did not cause. I understand the legitimate frustrations of those who had to be supportive again. However, today the data shows an improvement in the budget situation, and we are in a clear stabilization process,” said Nicusor Dan.   Finance Minister Alexandru Nazare presented the latest budget execution data at Tuesday’s meeting at Cotroceni, ahead of the upcoming budget revision. Economic indicators show positive trends, allowing the government program to continue without jeopardizing macroeconomic balances, according to the press release.   “The President of Romania reaffirmed the presidential institution’s support for essential reforms in all social sectors, reforms expected by citizens and undertaken by the current parliamentary majority. The governing coalition will continue its work in the current format, with the clear objective of implementing the measures outlined in the government program for which it received Parliament’s trust,” the statement concluded.