The article argues that the Bolojan government's 2025 tax increases were justified, as Romania had the largest budget deficit in the EU at 7.9% of GDP in 2025 (down from 9.3% in 2024) and risked losing its lowest investment-grade rating. Higher taxes, including a VAT increase from 19% to 21% and a dividend tax rise from 10% to 16%, helped cut the deficit to 3.82% of GDP after nine months, while budget revenues rose 11.8%. However, the taxes also reduced corporate profits, consumption and foreign direct investment. The IMF forecasts a 0.5% economic contraction in 2026, and about 70,000 jobs were lost between May 2025 and June 2026. The article also notes that some of the additional revenue goes toward interest payments.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on bursa.ro ↗
Related news
- Iowa fiscal picture improves slightly , but budget deficit remains | Iowa State Legislative News
Iowa's nonpartisan Revenue Estimating Conference projects the state will collect $8.54 billion in revenue in the 2026-27 budget year, $66 million more than its March forecast but still $1.1 billion below planned spending. This is the second straight budget year with a shortfall, largely caused by income tax cuts that took full effect in 2025, and lawmakers are using the Taxpayer Relief Fund to cover the gap until revenue catches up. Jennifer Acton cited persistent inflation, higher borrowing costs and geopolitical uncertainty around gas and diesel prices as ongoing concerns despite positive growth. Kraig Paulsen said the state has no revenue problem and expects growth to continue, and the REC will meet again in December. Republican leaders, including Gov. Kim Reynolds, called the outlook strong and stable, while Democrats Janet Petersen and Megan Srinivas criticized the deficit and said wages are not keeping pace with costs.
- U.S. budget deficit swells to almost $2 trillion for fiscal 2026, up 12% in a single year
The U.S. ended fiscal 2026 with a budget deficit of $1.992 trillion, about 12% higher than the $1.775 trillion deficit in the prior year, according to the Treasury Department. It is the third-largest annual deficit in U.S. history, after 2020 and 2021 when pandemic stimulus spending was heavy, and marks the 25th straight fiscal year in deficit. Social Security was the largest spending item at nearly $1.7 trillion, followed by Medicare at almost $1.1 trillion, while net interest topped $1 trillion, up from $970 billion. Individual income taxes brought in more than $2.8 trillion, but corporate income tax receipts fell about $70 billion to $381 billion due to tax cuts, and customs revenue was hit by refunds after a Supreme Court ruling against many of Trump's tariffs, even as gross customs duties hit a record.
Related markets
Latest news
- Intel stock pops after JPMorgan gives a Neutral upgrade
JPMorgan (JPM) upgraded Intel (INTC) to Neutral from Underweight. The note points to improving execution under CEO Lip-Bu Tan, potential foundry customers for next-generation manufacturing, and rising earnings estimates for 2027 and 2028.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
- Netflix stock is down roughly 25% in 2026 as Q3 earnings loom
Netflix (NFLX) reports third-quarter results after the bell on Tuesday, with the stock down more than 25% this year and closing Friday near $70, versus $93.76 at the end of 2025. Investors are worried about slowing viewership, competition from YouTube, and live sports moving to Amazon Prime Video and HBO Max. Last week Netflix cut about 6% of its workforce (roughly 1,000 employees) and named Peter Rice its new chief content officer, and five firms lowered price targets in October. Analysts expect EPS of $0.82 on revenue of $12.88 billion, up about 12% from a year earlier, in line with Netflix's own forecast. KeyBanc's Justin Patterson wants more content investment, product changes, expense cuts and a possible first-ever dividend.
- Cleveland-Cliffs Jumps 10% on Strongest Quarter in Three Years; Nucor and Steel Dynamics Edge Higher
Cleveland-Cliffs (CLF) rose 10% to $13.29 after reporting third-quarter adjusted EBITDA of $612 million, beating its $575 million guidance and up sharply from $143 million a year earlier. Revenue of $5.61 billion missed the $5.72 billion expected, though sales rose 18.6% year over year on a higher average net selling price of $1,177 per ton and larger shipments. Management said imports remain well below historical levels, but it indefinitely idled the galvanizing lines at its Canadian unit Stelco due to oversupply. The company guided to about $715 million of adjusted EBITDA in Q4 and said 2027 adjusted EBITDA should exceed $4 billion based on current index price forecasts. Its target is to bring net debt to EBITDA below 2.5x by mid-2027.
- Tech rebounds as semiconductor stocks jump: AlphaCheck
Stocks were mostly higher on Monday as investors turned their focus to earnings season, with semiconductor stocks rebounding after last week's sharp sell-off. The Tech sector (XLK) rose, led by Nvidia (NVDA), AMD (AMD), Micron (MU) and SK Hynix (SKHY). Intel (INTC) also jumped after JPMorgan analysts upgraded the stock, while CoreWeave (CRWV), hammered last week, rebounded on a Goldman Sachs upgrade. Investors are watching this week's reports from Netflix (NFLX), SpaceX (SPCX), Tesla (TSLA) and Meta (META). The 10-year Treasury (^TNX) yield hovered near 5.1%, while Brent crude (BZ=F) dropped to $108 per barrel and WTI (CL=F) hovered below $98.
- AI capex may be Meta's biggest earnings test
Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.