Romanian PM Says Govt’s Pension Bill Helps Save EUR800M Annually

„Romanians need to know that social democrats and liberals, who oppose this bill, are depriving the state budget of this money that would result from recalculation,” Boc said after a meeting with unions and employers’ associations at the Labor Ministry.

The prime minister also said the government is not yet considering raising the value added tax or any other taxes in drafting next year’s state budget. He also said there have been no talks in the government to raise social security contributions.

Boc said the government is trying to have the 2010 state budget draft completed this month, so next year’s minimum wage should be set soon, because the budget is drafted depending on it.

The Parliament’s standing offices postponed for next Wednesday a decision on the government’s request for a confidence vote to enact an IMF-required pension law, which increases retirement age and eliminates special pensions, such as those of lawmakers, magistrates, military, law enforcement and intelligence services staff. The bill sets that all special pensions will be recalculated depending on people’s contributions, which means they will be reduced.

Boc accused the opposition of cowardice and called on lawmakers to go tell their voters they are in favor of keeping their pensions which range from 4,000 to 6,000 lei (EUR1=RON4.2673) per month.

Finance Minister Gheorghe Pogea, who is also interim labor minister, said Wednesday the government’s pension bill would cut budget spending by RON3.7 billion next year and more than RON23 billion in 2020.