RO Govt. concerned about Constitutional Court’s ruling on pension hike

Romanian labor minister Violeta Alexandru expressed concern about the ruling the Constitutional Court will make on the Parliament's decision that the 40% hike included in the Pension Law should be fully enforced immediately - and not gradually as proposed by the Government under the budget revision emergency ordinance in August.

"I hope we do not end up in a situation that blows up Romania's budget. Let me believe that the Constitutional Court's decision will take into account the reality in Romania," the labor minister said, quoted by Bursa.

Finance minister Florin Citu recently announced the third budget revision this year, raising the public deficit target from 8.6% to 9.1% of GDP - on assumptions that the 40% pension hike is deferred and implemented gradually.

Even under the Government's gradual plan, and assuming that other social benefits passed by the lawmakers are canceled or postponed, minister Citu says bringing the public deficit down to 7% of GDP next year will be difficult.

The case to be ruled by the Constitutional Court on November 25 regards the law that amends the Government's emergency ordinance on the gradual rise of pensions - a bill referred by the Executive to the Constitutional Court.

The case is essentially different from that regarding the doubling of the child allowances - a tricky situation that can be settled in the Government's favor (gradual rise) only after and if the Liberal Party (PNL) gets the majority in Parliament after the December 6 general elections.

(Photo: Violeta Alexandru Facebook Page)