Romanian lawmakers warn of business risks due to state payment delays

Romanian lawmakers have raised concerns regarding significant delays in payments from public institutions to private companies. Parliamentarians Samuel Miclău and Călin Matieș highlighted that businesses executing public works or providing services for local town halls and the Ministry of Development are facing severe liquidity issues due to unpaid invoices.

These delays, which in some cases have lasted between six months and a year, force entrepreneurs to cover salaries, materials, and suppliers out of pocket while still meeting their own tax obligations, including VAT. Lawmakers noted a discrepancy in how the state handles obligations: while taxpayers face immediate penalties and interest for late payments, companies must often engage in lengthy administrative or judicial processes to recover funds owed to them by the state.

The financial pressure is compounded by recent tax increases. Critics warn that these arrears could jeopardize local investments in critical infrastructure, such as schools, hospitals, and water networks, and may ultimately lead to insolvency for subcontractors and private firms.