RRI Live!

Listen to Radio Romania International Live

Public pensions go up

Less than 3 months ahead of the presidential election, the public pension increase has turned into a campaign theme

Public pensions go up

, 02.09.2019, 12:57

As of September 1, the value of the pension point, against which pension benefits are calculated in Romania, was raised by 15%. Five million pensioners benefit from the increase. The new law stipulates a gradual increase of the pension point value between 2019 and 2022, as well as the updating of millions of pension benefits paid at present.



The new act also provides for including Ph.D. and M.A. programmes in calculating length of service, and the possibility to “buy a maximum of 5 years of service. Minimum pensions will only be paid to people who have contributed to the public pension fund for at least 15 years.



Under the new law, the minimum guaranteed pension goes up from 640 to 704 lei. With an exchange rate of around 4.7 lei for the euro, Romanian pensioners remain some of the poorest in Europe, observers note, adding that over the past few years the steady rise in consumer prices has affected spending power substantially.



Even so, on Friday the International Monetary Fund recommended that Romanian authorities revise the new Pension Law, initiate a sustainable fiscal consolidation process and improve the management of public institutions. IMF experts argue that the new law jeopardises fiscal sustainability. According to the IMF assessment, Romanias economic growth rate will stay at 4% in 2019 and drop to 3% in the medium run. Estimates also show that the countrys budget deficit is set to reach 3.7% of GDP this year.



The Social Democrats candidate in this Novembers presidential election, PM Viorica Dancila, promised that the government has all the funds required to cover the measures taken by her Cabinet. She says the pension increase is an act of justice, and that never will a Social Democratic government measure pensioners incomes against macroeconomic indicators.



Analysts are not surprised with this move, given that pensioners make up an overwhelming majority of the voters of the Social Democratic Party. On the other hand, the Liberal vice-president, Senator Florin Citu, whose party supports the incumbent president Klaus Iohannis for a new term in office, criticises the Prime Ministers statement. It is not true that pensioners incomes are not correlated to the macroeconomic deficit, the Liberal economist said in a Facebook post, and added that the recent budget amendment approved by the Finance Minister indicates the measure will result in an estimated 2.9 billion lei deficit in the public pension budget, and the actual deficit will likely be at least double the estimated figure.


(translated by: Ana-Maria Popescu)

Today in the News Tuesday, 31 December 2024

Fiscal and budgertary measures at the end of the year

In the last meeting of this year, the Bucharest Government adopted an emergency ordinance on the basis of which the state budget for 2025 will be...

Fiscal and budgertary measures at the end of the year
Today in the News Monday, 30 December 2024

End-of-year concerns in Romania

One in four Romanians is unhappy with their lives and a similar percentage say they didn’t have a single reason for great joy this year, according...

End-of-year concerns in Romania
Today in the News Friday, 27 December 2024

Maia Sandu begins second term as president

Maia Sandu has begun her second mandate as president of the Republic of Moldova, which she obtained following the autumn election. Sandu was sworn in...

Maia Sandu begins second term as president
Today in the News Tuesday, 24 December 2024

Romania has a new Government

The new Government in Bucharest was voted in by the Parliament.   The new Government of Romania, led by the Social Democrat Marcel Ciolacu, took...

Romania has a new Government
Today in the News Monday, 23 December 2024

35 years since the anti-Communist Revolution in Romania

35 years have passed since Timişoara became the first city free from communism in Romania, a moment that triggered a wave of protests which would...

35 years since the anti-Communist Revolution in Romania
Today in the News Friday, 20 December 2024

Economic effects of political instability

The deadlock related to the establishment of a parliamentary majority to propose a prime minister and, therefore, the impossibility of forming a new...

Economic effects of political instability
Today in the News Friday, 20 December 2024

Conclusions of the Winter European Summit

The EU heads of state and government gathered in Brussels to discuss the war in Ukraine, migration, the situation in the Middle East, the Republic of...

Conclusions of the Winter European Summit
Today in the News Thursday, 19 December 2024

The EU and the exposure to disinformation

Attending the EU-Western Balkans summit and the European Council in Brussels, the Romanian president Klaus Iohannis said Romania was confronted with...

The EU and the exposure to disinformation

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company