Romanian Pensioners To Stage Countrywide Protest Wednesday

Nedelcu said that the pension cuts will exceed 15% in reality, once the co-payment system takes effect and healthcare beneficiaries have to pay for public services. Prices are also expected to rise, and the pensioners’ buying power will be dramatically reduced, said Nedelcu.

According to Nedelcu, the austerity measure is unfair because the average Romanian pension is EUR85, compared to the Greek EUR500. Also, unlike public sector employees whose salaries will also decrease, pensioners do not have the power to stage protests which would affect the system.

Romanian President Traian Basescu said Thursday, after talks with International Monetary Fund representatives, that pensions will decrease by 15% and salary funds in the public sector by 25%, which will also impact the minimum wage, adding subsidies will be drastically reduced, as the country is striving to stay afloat and avoid raising its main taxes. The cuts take effect on June 1, Basescu said.

Romania lacks an additional EUR500 that the pension fund would require to cover current pension rates, and must decrease them by 15% to keep the system sustainable.

Romania’s five union federation leaders also met Friday morning to schedule protests against President Basescu’s announced austerity plan.