Acting PSD chairperson Sorin Grindeanu stated on Thursday, at the launch of the Social Democrats’ Economic Recovery Plan, that it is not enough to merely acknowledge the absence of a national strategy; concrete measures must be taken.

He explained that the PSD plan is built on three main pillars and will be discussed with social partners – trade unions and employers’ associations – as well as within the coalition.

„Romania needs reform, it needs restructuring, and it needs a reduction in state spending. On these points, there is unanimity within the coalition. But Romania also needs something else: economic growth. Our country needs both hope and vision. Just a few days ago, we heard, from the highest level of the state, that Romania has no national plan. I agree with that statement, but it is not enough to acknowledge it; we must act to change this reality. We, at PSD, take responsibility and present an economic recovery plan. Romanian companies and citizens must see, beyond the darkness of austerity, a coherent program for development. This plan is based primarily on investment – above all, on stimulating greenfield investments, creating new jobs, and increasing production. These are the three pillars of our program,” Grindeanu told a press conference.

According to him, the Social Democrats’ proposals will not put pressure on the state budget.

„From the outset, I want to make clear that all our proposals place no burden on the budget – they do not mean budgetary spending. Most of the measures are facilities the state can provide in the long term, measures that are self-financed or funded, for example, through European funds and other sources, without direct budgetary impact. For example, we propose the tax credit method. (…) This would allow companies wishing to invest to benefit from deductions – facilities granted by the state – from corporate income tax, for a period of five years, with the option to extend to ten,” explained the PSD leader.

He specified that the entire recovery package relies on three simple, efficient, and verifiable instruments, the first being state guarantees for SMEs.

„SMEs are in fact the real driving force of the Romanian economy. Economic recovery requires rapid financing. To achieve this, we need to ensure quick access to financing. That is why we propose a state guarantee scheme for SME loans, structured as follows: 60% of the ceiling for investments, equipment, construction, digitalization, and 40% for working capital. Public guarantees provided by the state unlock lending very quickly in cases where risk is high but the business potential is real. The scheme comes with clear eligibility criteria, an annual ceiling, and transparency conditions for use of these funds,” Grindeanu detailed.

The second instrument proposed by PSD concerns the legal framework to support companies investing in research, innovation, and development.

„We live in a time when artificial intelligence is becoming an everyday reality. We want to strengthen the part of the economy based on intellectual property. We therefore propose several facilities: up to 50% support through tax credits for investments in data centers and artificial intelligence – hardware, facilities, and critical software; a super-deduction of up to 200% for R&D expenditures over a maximum of five years; and a 30% tax credit for research, development, and innovation expenses, along with access to reduced-cost R&D loans. All these instruments will comply with EU aid ceilings and regulations,” the PSD leader emphasized.

The third instrument of the PSD plan targets young people’s entry into the labor market.

„No recovery plan is complete without young people. That is why we insist on measures aimed at this important category – young people who are neither employed nor enrolled in education or training, whose unemployment rate currently exceeds 24% in Romania. For this group, we propose granting a stability bonus: 1,000 lei per month during the first 12 months of employment, and 1,250 lei per month in the second year, for those hired for the first time on permanent contracts. It is important to also discuss this with Commissioner Roxana Manzatu, so that these programs are financed with priority for Romania,” Sorin Grindeanu underlined. AGERPRES