Romania's Constitutional Court upholds fiscal consolidation law challenged by opposition

Romania's Constitutional Court ruled on July 22 that the law on certain fiscal-budgetary measures, part of the government's fiscal consolidation package, is constitutional. The decision was unanimous and dismissed the objections filed by opposition deputies from the Alliance for the Unity of Romanians (AUR), SOS Romania, the Young People's Party (POT), and several unaffiliated members of Parliament.

The challenged law includes key provisions such as an increase in the value-added tax (VAT) rate and the introduction of mandatory health insurance contributions for pensioners receiving more than RON 3,000 (EUR 600) per month.

In an official statement, the Constitutional Court said it found "the legislator has the power to establish fiscal burdens in the form of social health insurance contributions on any categories of income, regardless of their nature, including income from pensions and other categories of indemnities," citing Articles 1(3) and (5), 47, 48(1), and 56 of the Constitution.

The Court further clarified that taxation on income, including pensions, complies with constitutional principles and does not violate any fundamental rights.

In response to the ruling, AUR spokesperson Dan Tanasă accused the Court of abandoning its role as a guarantor of democracy, calling the decision "a legitimisation of a gross abuse of power" and criticising the legislative process as lacking transparency and public debate.

The fiscal consolidation package, introduced earlier this year by prime minister Ilie Bolojan's government, is aimed at reducing the national deficit and ensuring medium-term fiscal stability. The measures have sparked criticism from opposition parties, which argue the law disproportionately affects vulnerable groups such as pensioners.

(Photo source: Inquam Photos/Octav Ganea)