Pensions and protests

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)