Romania Will Neither Cut Nor Tax Pensions In 2012 – Ruling Party Official

He added the Government is analyzing whether a possible pension increase next year is sustainable. He said pensions will be raised only if the country registers an economic growth of over 3.5%.

Considering the situation Europe is currently facing and the likelihood that estimations on Romania's economy will show a 2-2.5% growth, the Government has not yet taken a clear decision on this matter, pointed out Oltean.

If the economy is seen to grow over 4-4.5%, public sector employees' wages might also be raised, highlighted Oltean.

Prime Minister Emil Boc said Thursday the Government has not held talks on introducing new taxes to allow for future pension increases.

The Labor Ministry said in a press release Wednesday the institution sent two propositions to the Finance Ministry to be considered in the draft budget for 2012. One of the propositions states pension increases, if and only if the measure is sustainable, reads the press release.

Labor Minister Sulfina Barbu told lawmakers in the Chamber of Deputies' labor committee Wednesday the ministry drafted a budget that raises pensions by an average 6.5% in 2012, which would cost the state budget an extra 3 billion lei (EUR680 million).

She said the draft has been sent to the Finance Ministry for analysis and approval.

"We have sent the Finance Ministry several variants for the budget, including one that raises pensions as the pension law requires, but it remains to be seen whether we have the necessary financial resources," said Barbu.

The minister added the Government has not planned to raise any taxes or social security contributions.

(EUR1=RON4.3295)

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