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Over 12,000 Romanian Retirees To Sue Govt If Pensions Are Cut

Over 12,000 Romanian retirees will file a collective suit against the Romanian state if the Government goes through with its plan to lower pensions by 15% to cut public spending, the foundation filing the suit said in a press release Wednesday.
Over 12,000 Romanian Retirees To Sue Govt If Pensions Are Cut
19 mai 2010, 10:10, English

The Foundation Protecting Citizens from State Abuse said it would take legal action in the name of about 12,000 retirees and challenge the Government’s actions at the Constitutional Court if pensions are reduced.

Romania’s Government is currently working on cutting public sector wages by one fourth and lowering pensions and social aid by 15%, to trim the country’s budget deficit to 6.8% of GDP in order for the International Monetary Fund and other international institutions to release a new installment of a EUR20 billion rescue loan agreed last year.

Spending cut announcements have sparked waves of social unrest and mounting tension and most social categories have been protesting in the street and calling on the government and president to resign.

About 60,000 people are expected to picket the Government’s headquarters in Bucharest Wednesday, hoping to pressure authorities into toning down their austerity plan. Romania has about 1.4 million state-employees, which make up about one third of the country’s total number of employees. The country also has over five million retirees.