Reforming special pensions in Romania turns into ruling coalition's hot potato

While the Social Democrat (PSD) leader is pressing the Liberal (PNL) prime minister Nicolae Ciuca to settle the special pensions issue, blaming the Liberals for having accepted to include in the national Relaunch and Resilience Plan (PNRR) unrealistic targets on this topic, PM Ciuca and the Liberal ministers seem to avoid quick resolution while still in office.

Terminating the privileges extended to various categories of former state employees under the umbrella of "special pensions" (not related to past contributions) turns into a hot potato among Romania's ruling coalition's partners.

Social Democrat leader Marcel Ciolacu prepares to serve as prime minister for the coming year and a half, ahead of the general elections in 2024 – and losing a disbursement under the Resilience Facility during his term would be politically costly, G4media.ro reported. Not cutting the privileges would be even costlier in terms of votes.

More than a mere technical aspect, the special pensions reform has been and is about fairness and is a sensitive electoral topic. That's why PM Ciuca – himself a recipient of a special pension as a retired military – fiercely defending the benefits of retired military personnel is not a good political strategy.

Last time, PM Ciuca stressed that the military personnel's post-retirement benefits are not "special pensions". A position not shared by the European Commission, which required Romania not to terminate the special pensions – but to explain all deviations from the benefits resulting from past contributions.

(Photo source: Inquam Photos/Octav Ganea)