World Bank says Romanian Govt.'s bill on special pension scheme lacks effects
The progressive taxation of the so-called "special pensions" under the bill passed by Romania's Senate will have limited effects on the overall public spending with such benefits, the World Bank argues in response to the lawmakers…
iulian ernst · Journalist
· Updated · 1 min read
The progressive taxation of the so-called "special pensions" under the bill passed by Romania's Senate will have limited effects on the overall public spending with such benefits, the World Bank argues in response to the lawmakers endorsing the draft bill on this topic inked by the government.
The bill has insignificant effects on public spending, which was the main target of the bill, the WB argues, according to Europa Libera Romania.
"On a net basis, the reduction will be 0.003% of GDP in 2028 and 0.012% of GDP by 2070," the report states.
At the same time, the Chamber of Deputies passed on the same day, May 12, a new bill that establishes a new category of "special pension" recipients in the judiciary system, Europa Libera announced. Under the bill drafted by the Social Democratic Party (PSD) but also supported by the MPs of the Liberal Party (PNL), the assistant magistrates of the Constitutional Court will benefit from special pensions.
(Photo source: Inquam Photos/Octav Ganea)
