Romanian Social Democrats fuel concerns about future of Pillar II pension funds

A comment by Social Democrat (PSD) labour minister Marius Budai related to the privately managed pensions (Pillar II) prompted concerns related to the Government’s plans about it. Minister Budai said that the deficit of the public pension system will be RON 12 bln (EUTR 2.4 bln) this year, precisely as much as the mandatory transfers to the privately managed pension funds (Pillar II). He stressed that he does not intend to nationalise the private pension funds, though.

Social Democrat leader Marcel Ciolacu used the opportunity to complicate the situation and fuel concerns about the uncertain future of the money transferred to Pillar II. “I believe that Pillar II should not be abolished, but, instead, we must also develop in terms of private insurance, develop the whole chain. What has been done for the year 2022 is insufficient, all the legislation must be developed and we must give it a completely different scope," said Ciolacu without explaining further.

In this fuzzy context, MP of reformist party USR Claudiu Năsui, a former economy minister, warned that the coalition of Social Democrats and Liberals plans "to seize Romanians' money from the Pillar II". According to him, a new plan for the nationalization of Pillar II is being prepared by the finance ministry led by Social Democrat Adrian Câciu, but, compared to the Dragnea era, the plan “is now much more treacherous and is supported by the Liberals and president Klaus Iohannis.”

(Photo source: Gov.ro)