Romania Insider

Update: Labor minister quoted saying low pensions will not be cut, minister denies

Pensions below the RON 1,000 threshold (around EUR 240) will not be cut by 15 percent, according to Mihai Seitan, the Romanian Labor minister, as reported by representatives of the pensioners who have met the minister earlier today. The pension cut measure was announced by the Romanian government following the discussions with the IMF as part of a package which should ease public spending and tighten the country's budget deficit. The measure, along with the announced 25 percent cut in public clerks' salaries, was not well received in Romania. Several protests have already been organized. Public employees are preparing another strike on May 31st.

Cristea Toader, the head of the pensioners alliance, who participated in talks with minister Seitan, said pensioners will protest even if pensions will not be reduced, in order to persuade authorities to keep the pension point at 45 percent of the average gross salary in Romania. The pension point is the indicator used to calculate pensions in Romania.

UPDATE: The Labor minister denied having told the pensioners' representatives about the promise to keep pensions below RON 1,000 out of the pensions cut plan. Finance minister Sebastian Vladescu also said a differentiated cut cannot be imposed. The pensions cut will be done through a reduction in the value of the pension point, which will affect all pensioners alike.

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Romania Insider

Update: Labor minister quoted saying low pensions will not be cut, minister denies

Pensions below the RON 1,000 threshold (around EUR 240) will not be cut by 15 percent, according to Mihai Seitan, the Romanian Labor minister, as reported by representatives of the pensioners who have met the minister earlier today. The pension cut measure was announced by the Romanian government following the discussions with the IMF as part of a package which should ease public spending and tighten the country's budget deficit. The measure, along with the announced 25 percent cut in public clerks' salaries, was not well received in Romania. Several protests have already been organized. Public employees are preparing another strike on May 31st.

Cristea Toader, the head of the pensioners alliance, who participated in talks with minister Seitan, said pensioners will protest even if pensions will not be reduced, in order to persuade authorities to keep the pension point at 45 percent of the average gross salary in Romania. The pension point is the indicator used to calculate pensions in Romania.

UPDATE: The Labor minister denied having told the pensioners' representatives about the promise to keep pensions below RON 1,000 out of the pensions cut plan. Finance minister Sebastian Vladescu also said a differentiated cut cannot be imposed. The pensions cut will be done through a reduction in the value of the pension point, which will affect all pensioners alike.

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