Romania’s Social Democratic Party (PSD), which is close to becoming part of the ruling coalition, has among its priorities hiking the minimum statutory wage by 19% (28% for the employees with higher education) in two steps until July 2022, the party’s first vice-president Sorin Grindeanu confirmed, Ziarul Financiar reported. He made the statements after the party leadership met in the morning of November 8, to prepare the negotiations with the Liberal Party (PNL).

Asked to comment about Social Democrats’ priorities that seem to put pressure on the public budget, Liberal Party’s vice-president Alina Gorghiu assured that “no populist provisions will be accepted in the ruling strategy,” daily Adevarul reported.

The Social Democrats have pursued a policy of wage-led growth after they came into office in 2012, which resulted in higher incomes but also wider public deficits.

The policy was discontinued by the Liberals, who ruled since the end of 2019. The minimum wage has increased by 7.2% in January 2020 and only 3.1% in January 2021 - while the minimum statutory wage for those with higher education remained steady over the past two years.

When it comes to child allowances, PSD wants to increase them by 40% to RON 300 (EUR 60) and RON 600 (EUR 100) for children under two years as soon as December 1.

As regards the pensions, the Social Democrats want an 11% hike as of December 2021 (double the 6% rise envisaged by the Liberals for January 2022). They hint that Law 127 (better known for the 40% hike of the pensions) should be left untouched and implemented under a calendar to be negotiated by the ruling coalition’s partners. 

(Photo: Gabriel Petrescu | Dreamstime.com)

iulian@romania-insider.com