Austerity In Romania In The Context Of Vulnerable Groups
Austerity In Romania In The Context Of Vulnerable Groups

Summary/Abstract: The fiscal and administrative austerity package introduced by the government in 2025 includes higher consumption taxes, reduced social protections, and stricter conditions for social benefits. A major measure is raising the standard value-added tax (VAT) from 19 % to 21 %, while setting a single reduced VAT rate of 11 % for essential goods and services — including food, medicines, thermal energy, water, and other basic necessities. These price increases disproportionately burden persons with disabilities, who often rely on fixed or limited incomes and may spend a larger share of their income on essentials such as medicines, utilities, and accessible housing. Furthermore, the austerity package introduces stricter controls on social benefit payments. According to recent legislative proposals, allowances for persons entitled to social support — such as disability allowances — could be subject to seizure to cover unpaid local taxes and fees. Thus, individuals with disabilities who depend on monthly indemnities may face increased financial insecurity, especially if they live in precarious economic situations or already struggle to meet living costs. At the same time, while some pensioners remain exempt from new health-insurance contributions (CASS), this exemption may not uniformly extend to all categories of social beneficiaries. The measures as necessary fiscal adjustments, persons with disabilities — given their often limited incomes, higher dependency on social allowances, and greater need for essential goods and services — are likely to be among the most negatively impacted groups.

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