Budget adjustment bill reaches Parliament

Parliament to debate budget adjustment bill amid controversy generated by opposition's amendments.

Eugen Coroianu, 21.09.2020, 14:00

The Parliament in Bucharest has a tense week ahead,
dominated by the government’s bill on the adjustment of this year’s budget. The
bill has already been amended in Parliament’s committees by the Social
Democrats in opposition so as to increase spending. The Liberals, who form a minority
government, threaten to refer the matter to the Constitutional Court but not
before trying to work with the other parties in Parliament to block the Social
Democrats’ amendments. The latter usually have a majority in Parliament, but
have recently lost some of their MPs, so the result of the vote is unpredictable.

The most important amendment to the budget adjustment bill
refers to eliminating an article on increasing pensions by only 14% as of 1st
September. If the amended bill passes in Parliament, pensions will go up by 40%
instead. The committees have also eliminated a government’s amendment postponing
for next year an increase in teachers’ wages so the increase may come into
force as of 1st September this year. Another amendment aims to cap
Romania’s borrowing from 44 to 40% by the end of the year. Prime minister
Ludovic Orban has warned that the budget cannot possibly sustain the amendments
proposed by the Social Democratic Party:

What has happened in the budget and finance committee
is a crime against the Romanian economy, with the country risking of going into
default. We will put up a fight in the two joint chambers to send the report
back to the budget and finance committee. I’m convinced that with the
cooperation of the other political parties, we will manage to do so.

The prime minister has explained that the Social Democrat’s
proposals would lead to additional spending of 6.3% of the GDP both this year
and the next, which cannot be sustained. We will use all constitutional and
legal means at our disposal, including a new adjustment, the prime minister
emphasised. The centre-right Save Romania Union has also warned that the Social
Democratic Party is sending the country’s budget into chaos through its proposed
amendments. The Social Democrats wish to pass yet another bill to grant a bonus
to teachers for resuming teaching amid a pandemic. Marcel Ciolacu, the president
of the Social Democratic Party:

Teachers are in the front line right now, just like
doctors. We’re proposing a bonus of 500 euros, just like that for doctors. The
bill will be received on Tuesday by the Chamber of Deputies and will be put to
a final vote, from which it will be submitted for promulgation.

The
Social Democrats say the money for all this spending will be found later
through measures the government can take in the future. (CM)