Does the PSD's government program promise autonomy to the Székelys? Behind the reference to Alba Iulia there is not a single concrete measure

The program of the Niculescu government, made up of PSD politicians and so-called experts, which was submitted to parliament on Thursday evening, projects a budget deficit of 5.2 percent of gross domestic product for next year, and promises minorities, including us Hungarians, rights and opportunities formulated "in the spirit of the Alba Iulia resolution." At the 1918 Alba Iulia national assembly, autonomy was promised to minorities—could this be Luca Niculescu's program?

Among the program's most important economic measures are the abolition of the turnover-based minimum tax affecting large companies, a "cautious" indexation of pensions, and the gradual shift of property tax to market value—the latter being the measure previously launched by Bolojan as well, which led to protests in Szeklerland. The UDMR was part of the government back then and will now vote for these measures, yet it remains in opposition, just like the PNL—this alone explains why, as well as why Romania's political class regards the Niculescu cabinet as a kamikaze government. According to a summary by G4Media, the document also states that the government will adopt the 2027 draft budget and the 2027–2029 fiscal strategy by December at the latest, and parliament will pass it by December 31. This is far from self-evident in Romania's case, since in recent years the budget has often only been adopted at the beginning of the new year; at the same time, we know nothing about a possible VAT cut. Previously, for example, VAT on basic foodstuffs was low, but the Bolojan government abolished this, at the demand of government members such as Hunor Kelemen. Luca Niculescu also submitted the list of ministers this evening, from which it appears that he has accepted every PSD nominee, including the interior minister who has a final conviction.

The deficit target and the spending cap

According to the program, the deficit target will be the one the government agrees on with the European Commission. The fiscal strategy approved by parliament this past March projects a deficit of 5.2 percent calculated according to the EU methodology, ESA, which according to estimates amounts to a cash deficit of roughly 110 billion lei. The difference between the two is technical but significant: the ESA methodology is the EU's accrual-based benchmark, monitored by Brussels under the excessive deficit procedure, while the cash deficit shows how much more money actually leaves the state coffers than comes in. Romania has for years been the EU member state with the largest budget deficit and is subject to an excessive deficit procedure, so the number-one task of every new government is not to deviate from the adjustment path agreed with Brussels.

This is served by the program's strictest element, the spending cap. According to the recommendation of the Council of the European Union, net expenditure may grow by at most 4.6 percent in 2027. "Net expenditure" is the EU rules' new benchmark: it means the state expenditures the government can actually influence, so it excludes, for example, interest payments and spending financed from EU funds—in other words, relative to GDP, the state's operating expenditures excluding EU money cannot grow. Personnel expenditures must fall from 9.3 percent in 2024 to 7.9 percent by 2031, and the unified pay law must be adjusted accordingly. According to the program, the fiscal space thus freed up will be used for targeted, structural correction of inequities in the pay system, not for across-the-board pay rises that would only deepen these disparities. Social spending will remain below 12.2 percent of GDP, pensions will be indexed from 2027, targeted support is promised for the vulnerable and for small pensioners, and the labor and finance ministries will jointly calculate its impact even before the budget is drawn up. The program also states that no other social benefit may grow faster than nominal GDP.

The turnover-based minimum tax will be abolished

Perhaps the most important announcement for the business sector is that, from January 1, 2027, the government will abolish the turnover-based minimum tax, IMCA. This was introduced for large companies: if the profit tax a company owed was smaller than one percent of its turnover, it had to pay the difference as a minimum tax. According to the program, IMCA punishes revenue instead of actual profit, holds back investment and undermines companies' competitiveness, which is why its abolition is described as a condition for a fair and predictable tax environment. The document stresses that the resulting revenue shortfall will be built into the budget and that the deadline will not be postponed. This is a notable turn, since one of PSD's leading politicians, Daniel Zamfir, nominated as economy minister, is considered one of the loudest supporters of precisely this type of tax targeting multinational companies.

Revenues: collection, property tax, excise duties

On the revenue side, the program relies primarily on broadening the tax base and improving tax collection, but cautiously: according to the document, any surplus from tax collection will be treated only as a reserve and will not be built into the budget in advance. This paragraph is in fact also self-criticism, since a recurring flaw of Romanian budgets in recent years has been that they counted on better-than-expected tax collection, which then failed to materialize. The program sets out five directions:

1. targeted support for the vulnerable, including cautious indexation of pensions within the deficit-reduction path;

2. prioritization of investments financed from domestic sources;

3. making central and local administration more efficient, and optimizing the funds allocated to local authorities;

4. the gradual shift of property tax to market value by the end of the adjustment process;

5. and excise duties that rise according to a predictable schedule adjusted to current conditions, with a broader base.

The reform of property tax may be the most sensitive point for the population, since today the tax base is in most cases well below the market price, so the transition—even if gradual—could mean a noticeable tax increase for many owners. The program also devotes a separate section to the Moldavia region, that is, Romania's historical eastern province extending to the Prut River. The budget will secure advance payments and funding for dual-use—civilian and military—infrastructure, including the Pașcani–Siret section, part of the A7 motorway, as well as the Târgu Mureș (Marosvásárhely)–Iași–Ungheni (Nyárádtő) A8 motorway, which links Transylvania to Moldavia through the Gheorgheni (Gyergyó) Basin.

Sectoral promises: from imports to domestic production

As a general goal, the program states that Romania should move from an economy built on imports and cheap labor toward one built on domestic production, innovation and technology, and that in fiscal adjustment, qualitative consolidation should take priority over quantitative austerity. The government aims to reduce the deficit through more efficient spending, better collection and action against large-scale tax fraud, while protecting investment, production and purchasing power. In healthcare, the focus would gradually shift from hospitals to prevention, family medicine and outpatient specialist care, so that every patient is diagnosed and treated in time, at a European standard, regardless of where they live. In education, they promise a school where a child's chances do not depend on their parents' income, place of residence, ethnicity or mother tongue. Within the budget's constraints, the government would gradually correct the effects of Law 141/2025 that most severely affect students and teachers—this was the education component of the Bolojan government's austerity package last year, which affected, among other things, teachers' workload and class sizes. In addition, three long-term reforms are being prepared: of education financing, of research and of the curriculum.

In energy, more than 5,000 megawatts of new generation capacity are promised by the end of 2027, along with around eight billion cubic meters of Black Sea natural gas annually, mainly from the Neptun Deep field, so that by the end of 2028 Romania will be less dependent on expensive electricity imports. In infrastructure, they promise to finish ongoing construction projects and prioritize rail, using EU funds, SAFE, public-private partnerships and the national budget. SAFE is the European Union's preferential loan facility for defense investments, of which Romania is one of the largest beneficiaries. According to the program, regarding EU funds, the tasks are drawing down the final payments of the recovery plan, speeding up the 2021–2027 cohesion funds, and negotiating the 2028–2034 EU budget, with the government moving "from administering funds to directing investments." In justice, they promise independent and efficient courts and prosecutor's offices, faster proceedings, digitalization, and action against corruption and serious crime—a sentence that carries particular weight given that Marian Neacșu, nominated as interior minister, has previously received a final conviction.

Defense, foreign policy and minorities

The security chapter is unambiguous: because of Russia's aggression against Ukraine, hybrid threats and Black Sea risks, stronger national defense is needed, so the government would gradually raise defense spending to five percent of GDP within the framework of NATO and the European Union, and through the strategic partnership with the United States, while tying military procurement to domestic industry. In foreign and security policy, the program relies on national consensus, the European Union, NATO, the strategic partnership with the United States, and OECD accession, and promises that the success of foreign policy will be measured by what Romania gains from it in terms of security, investment, markets and influence.

The section on minorities deserves special attention from Transylvanian Hungarian readers. The program is phrased "in the spirit of the Alba Iulia resolution," stating that the unity of the state and respect for ethnic, linguistic and religious diversity reinforce one another. The Alba Iulia resolution of December 1, 1918, declared the union of Transylvania with Romania, while also promising full national freedom to the peoples living together there, including the right to education, administration and justice in their own language—in effect promising autonomy. The Hungarian community has for decades invoked this promise as a commitment of the Romanian state that remains unfulfilled to this day; however, the text does not reveal to what extent the government program actually gives substance to this reference: the document contains no concrete minority-related measure, and the UDMR has not made its support conditional on any such terms. (The government program can be downloaded HERE)

The program describes the Romanian diaspora as part of the nation, and treats the Republic of Moldova as a separate strategic priority.

The list of ministers in the government led by Luca Niculescu:

1. Prime Minister (Prim-ministru); independent; Luca-Alexandru Niculescu

2. Deputy Prime Minister, Minister of Internal Affairs (Viceprim-ministru, ministrul Afacerilor Interne); PSD; Marian Neacșu

3. Minister of Transport and Infrastructure (Ministrul Transporturilor și Infrastructurii); PSD; Ștefan-Ovidiu Popa

4. Minister of Finance (Ministrul Finanțelor); independent; Alexandru Nazare

5. Minister of Foreign Affairs (Ministrul Afacerilor Externe); independent; Sebastian-Dănuț Neculăescu

6. Minister of Justice (Ministrul Justiției); PSD; Radu Marinescu

7. Minister of National Defense (Ministrul Apărării Naționale); PSD; Ștefan-Radu Oprea

8. Minister of Economy, Digitalization, Entrepreneurship and Tourism (Ministrul Economiei, Digitalizării, Antreprenoriatului și Turismului); PSD; Daniel-Cătălin Zamfir

9. Delegate Minister for Digitalization and Artificial Intelligence (Ministrul Delegat pentru Digitalizare și Inteligență Artificială); independent; Costinel-Bogdan Dumitru

10. Minister of Energy (Ministrul Energiei); independent; Dumitru Chisăliță

11. Minister of Agriculture and Rural Development (Ministrul Agriculturii și Dezvoltării Rurale); PSD; Florin-Ionuț Barbu

12. Minister of Environment, Waters and Forests (Ministrul Mediului, Apelor și Pădurilor); PSD; Natalia-Elena Intotero

13. Minister of Development, Public Works and Administration (Ministrul Dezvoltării, Lucrărilor Publice și Administrației); PSD; Marcel-Alexandru Stoica

14. Minister of Investments and European Projects (Ministrul Investițiilor și Proiectelor Europene); PSD; Alexandru-Mihai Ghigiu

15. Minister of Labor, Family, Youth and Social Solidarity (Ministrul Muncii, Familiei, Tineretului și Solidarității Sociale); PSD; Petre Florin Manole

16. Minister of Health (Ministrul Sănătății); PSD; Alexandru-Florin Rogobete

17. Minister of Education and Research (Ministrul Educației și Cercetării); independent; Valentin-Sorin Costreie

18. Delegate Minister for Pre-University Education (Ministrul Delegat pentru Învățământ Preuniversitar); PSD; Sorin-Gabriel Ionescu

19. Minister of Culture (Ministrul Culturii); independent; Ioana-Ruxandra-Victoria Ciocan