Romania: legislative developments with immediate business relevance

Romania has a new set of rules tightening consumer protection rules for online financial services and sustainable products, according to the newly adopted Government emergency ordinance. It bans misleading claims, requires clear information and standardized labeling, and gives consumers a 14-day withdrawal right for distance contracts. It also sets rules on software updates, product durability, and environmental claims, with phased implementation from March to September 2026, and repeals GO 85/2004.

The Ordinance will soon be published in the Official Gazette, followed by parliamentary approval. We do expect amendments and improvements to the provisions to be taken into account during the parliamentary debate.

Businesses must provide transparent, verified information about costs, contractual terms, and environmental characteristics. Additionally, companies need to ensure product labels, durability claims, and software updates comply with new standards or face sanctions. The rules increase accountability, reducing legal risk while promoting trust and comparability for consumers across the EU.

Companies should review all online contracts, product descriptions, and labeling to ensure compliance, implement systems for notifying consumers about software updates, and verify sustainability claims through official certifications. Businesses must also update internal procedures and staff training ahead of the March–June 2026 implementation dates to avoid penalties.

Parliament has approved a Government-backed law updating Romania’s Fiscal-Budgetary Responsibility Framework to meet EU standards. The law strengthens fiscal discipline and transparency by updating accounting and debt reporting rules, improving budget and economic forecasts, and giving the Fiscal Council more powers to review policies, participate in hearings, and publish opinions. It also sets rules to reduce public debt above 60% of GDP, evaluates deviations from budget targets using EU guidance, and requires budgets to consider risks from climate change and natural disasters. All data on debt, deficit, and medium-term budgets must now be published in a clear, standardized format.

The law will soon be signed by the President of Romania and published in the Official Gazette.

If applied correctly, the law could give companies and investors a predictable fiscal environment, as it enhances transparency. Standardized reporting and stronger oversight by the Fiscal Council may reduce fiscal uncertainty, helping companies plan better. Risk assessments for climate and disasters may also affect long-term investment decisions.

Businesses should watch fiscal reports and budget plans, especially debt reduction and investment priorities, to anticipate changes affecting taxes, public contracts, or funding. Financial planners and investors may need to adjust risk models based on the new reporting and correction rules.

A legislative initiative by AUR MPs aimed at increasing the VAT exemption threshold for small businesses to 500,000 RON per year has been withdrawn from the legislative process. As the initiators argued, the proposal sought to support micro-enterprises and local entrepreneurs, reduce bureaucratic burdens, and encourage economic activity in rural areas, but it will not move forward.

Small businesses and micro-enterprises will continue operating under the current VAT threshold, meaning no immediate relief in administrative or tax obligations. Companies near the current limit may still face the same reporting requirements and VAT compliance costs.

Businesses should maintain compliance under existing VAT rules and monitor any future proposals, but no changes will take effect from this withdrawn initiative.

After days of intense negotiations, Romania’s PSD-PNL-USR-UDMR Coalition Government reached a compromise on the 2026 state budget law, which was adopted by the Parliament. Following the amendments from the Parliament, PSD secured approval for its €1.1 billion “solidarity package,” supporting 2.8 million pensioners and nearly 300,000 children in low-income or single-parent households. The budget sets a macroeconomic framework with 1.0% GDP growth, total GDP of 2,045.2 billion RON, and an average net wage increase of 5.5%. Total revenues are estimated at 736.5 billion RON, expenditures at 864.3 billion RON (42.3% of GDP), with a deficit of 127.7 billion RON (6.2% of GDP).

President Nicușor Dan will soon sign the law, which will then be published in the Official Gazette.

The focus on infrastructure, energy, and NRRP-supported programs is expected to stimulate demand for goods, services, and construction, benefiting companies involved in these sectors. Measures also maintain predictable taxation and public sector wage policies, providing stability for businesses operating in Romania.

Businesses should monitor public investment opportunities, particularly in infrastructure, energy, and NRRP projects, to identify contracts and funding opportunities. Companies may also align financial planning with projected public spending and wage policies, and explore partnerships in sectors targeted by EU-funded programs or state-supported initiatives.