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A potential increase in the minimum wage in Romania to 5,000 lei by January 2027 could significantly impact both employees and employers. While unions advocate for this raise, economist Adrian Negrescu warns that such a rapid change lacks a clear strategy and could lead to adverse effects on the labor market. He emphasizes the need for predictable policies rather than sudden announcements. The increase would benefit low-wage workers but could strain small and medium enterprises, potentially leading to fewer job opportunities. Negrescu suggests that reducing labor taxes might be a more effective way to support low-income workers than merely raising the minimum wage.

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