Romanian opposition warns Govt. not able to hike pensions in line with law

There are no signs that the Liberal Government will be able to implement the pension law providing a 40% increase in public pensions starting September 1, the leader of Romania's Social Democratic Party (PSD) Marcel Ciolacu, who's also the de facto leader of the opposition, has warned, according to News.ro.

The pension law invoked by Ciolacu was drafted and passed by the Social Democrats last year and poses significant risks for the budget execution this year - and particularly next year.

Ciolacu also used the opportunity to blame the Liberal Government (which replaced the Social Democrat Government last November) for not having discussed the recent budget revision in Parliament. The Government remade the 2020 budget planning, envisaging a 6.7% budget deficit - up from 2.65% planned last December.

Prime minister Ludovic Orban, speaking for Digi24 TV channel on April 27, said that the decision on the pension hike would be taken after the mid-year budget revision.

PSD leader Marcel Ciolacu, who also serves as head of the Chamber of Deputies, also argued that the outlook downgrade operated by Moody's and Fitch this month and S&P last December reflects expectations - rather than past events, as claimed by finance minister Florin Citu. All three major rating agencies have revised to negative from stable their outlook on Romania's sovereign rating.

"The outlook is about the future and not about the past," Ciolacu stressed.

He announced that the Social Democratic Party (PSD) would file simple motions against finance minister Florin Citu and agriculture minister Adrian Oros.

(Photo source: Facebook/Marcel Ciolacu)