Pensions and protests

Romanians' pensions might go up by at least 10% starting January 10

Roxana Vasile, 28.10.2022, 14:00

Pensions in the
public system are expected to go up starting January 1. The ruling coalition
wants to increase the pension point by at least 10%, which would cover the
effects of the rampant inflation, which this year exceeded 15%, affecting a
large number of pensioners with low incomes. To partially correct the
situation, one of the obstacles hindering this move, namely the cap on pension
expenses imposed under the National Recovery and Resilience Plan (PNRR), is
expected to be replaced by an indicator signaling budget possibilities and
other criteria of financial discipline, Romania’s Prime Minister, Nicolae Ciucă,
said in Brussels.

There is a 9.4% cap
stipulated in PNRR for pension budgets, and we agreed we can replace it with an
indicator that should factor in the study of the World Bank and a financial
discipline indicator.

The Prime Minister
went on to say that his talk with European Commission president, Ursula von der
Leyen, tackled the principle of this decision, whereas a group of experts will
next agree on technicalities. Social-Democrat president Marcel Ciolacu in turn
addressed what he has called the ludicrous 9.4% share of the GDP representing
the 50-year cap on pensions. Citizens must be protected, both pensioners and
public workers, the Government in Bucharest promises. Prime Minister Ciucă explained
that the authorities need to identify the necessary funds to make that possible:

We need to have
clear data regarding the planned budget for 2023 and identify the budget we can
use to increase pensions and salaries in a clear and transparent manner.

Amidst protests
staged by CNSRL-Frăția and Sanitas trade confdereations in Romania, people
are losing their patience and have these days staged protests in a number of
counties and in Bucharest, disgruntled with the low living standards and the
effects of the economic crisis. Unionists from the healthcare, education,
transport, public administration and the private sectors protested, criticizing
soaring inflation and the alarming increase in prices for electricity, natural
gas and fuel, against a stagnation of incomes in Romania, some of the lowest at
European level. Romanians’ purchasing power is at its lowest in the last 15
years, trade unionists say. Faced with
the unprecedented crisis of living costs, affecting workers both in Romania and
across the EU, employers, the authorities and the EU must take urgent action,
including with a view to modifying the law on Social Dialogue, thus involving
trade federations in the process of negotiating crisis response measures,
unionists also say. (VP)