RO labour minister questions 9.4%-of-GDP public pension cap under Resilience Facility

Romanian Social Democrat minister of labor Marius Budai says that the ruling strategy co-sealed with the Liberals says nothing about a new Pension Law, but it instead envisages "modernizing" the existing Pension Law (Law 127/2019, put on ice by Liberals for the impact on the budget deficit).

The Government's priority is enforcing the social package (higher pensions, minimum wages and child allowances), he stressed.

Minister Budai specifically questioned the provisions included in the National Recovery and Resilience Plan (PNRR) regarding the public pension system.

Under the PNRR, Romania commits to keep the public pension system's budget under 9.4% of GDP (and draft a new Pension Law).

"9.4% - this is what the former minister who included this in the PNRR should explain us, in the context in which the EU average for the budget of the public pension systems is 13%. Why [reformist party] USR and minister Ghinea wanted their parents and our grandparents poor, ask him. I didn't say whether there is [a risk of exceeding 9.4% of GDP]. I criticize this 9.4% included in the PNRR because I don't understand it. Why the EU has 13%, we proposed 11.7% by Pension Law 127, and minister Ghinea said 9.4%. I personally do not understand," he added, quoted by Bursa.

(Photo: Gov.ro)