Romanian President asks Govt. if it has enough money to pay salaries and pensions

Romanian president Klaus Iohannis launched another attack on the Government on Tuesday evening, May 22. He said the Executive should explain if it has enough money to pay salaries and pensions until the end of this year and what it plans to do with the mandatory private pension funds (Pillar II), following recent controversies. He accused the ruling Social Democratic Party (PSD) of inducing uncertainty about this subject and asked what their true intentions were. “Some ask themselves if this money, if they suspend Pillar II, will be used elsewhere. They must give us an answer. I think that the Government and PSD must publicly answer two questions: What are your intentions with pension Pillar II? Do you have enough money to pay pensions and salaries by the end of this year?” the president said in a press conference. PSD leader Liviu Dragnea and prime minister Viorica Dancila denied that the Government had any plan of suspending contributions to mandatory private pension funds after this information appeared in an official Government document. However, PSD plans to reform the pension system and to allow people to choose between state pension and private pension funds. Finance minister Eugen Teodorovici said on Tuesday evening that there was no danger that pension and salaries were covered until the end of this year and there was no danger of them not being paid. He added that the recent discussions have affected Romania’s financing costs. Romanian president urges Govt. to clarify situation of mandatory private pension funds editor@romania-insider.com (photo source: Presidency.ro)