Without a compromise with the European Commission, Romania risks losing EUR 500 million in Resilience funds for its refusal to tighten the microenterprise taxation, prime minister Marcel Ciolacu said in a press conference on March 21, G4media.ro reported.

The topic is still being discussed with the European Commission, which insists that standard profit taxation should be levied on firms with a turnover exceeding EUR 50,000 compared to EUR 500,000 currently. The amendment should be enforced this year, the Commission insists, while the Romanian Government envisages a gradual reduction of the threshold.

EU funds minister Adrian Caciu said earlier this year that “we consider the milestone met,” even if “the Commission still has some comments about the threshold of microenterprises.”

The provision is included as milestone 206 in the PNRR, linked to the third disbursement request submitted last December currently under review, PM Ciolacu admits, blaming his predecessors who drafted the National Resilience Plan.

“I do not support [the provision],” PM Ciolacu said.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)