Romania PM Says Draft Law Recalculating Special Pensions Adopted By Default In Parliament

According to Boc, the draft law stipulates that special pensions will be recalculated based on the principle of contributiveness, which considers the contribution of pension beneficiaries to the social security budget.

Romanian social democrat leader Victor Ponta said Thursday that social democrats on June 14 will challenge with the Constitutional Court the draft law recalculating pensions for which the Government recently sought lawmakers' confidence vote. Ponta said the deadline for adopting the draft law expires on June 14 when his party is set to challenge the law with the Constitutional Court.

The social democrat leader said his party is determined to draw up another no-confidence motion after the draft law regulating the pension system, which was approved by the Senate, is adopted by the Chamber of Deputies.

Boc on Monday sought the lawmakers' confidence vote for the country's austerity plan, which cuts social welfare benefits, pensions and public sector wages. Boc warned that Romania risks payment default unless it cuts budget spending. The austerity plan should help the recession-hit country bring its economy on track and convince the International Monetary Fund, which is leading a EUR20 billion rescue package agreed last year, to disburse further installments of the loan.

Boc is now facing a no-confidence motion, submitted against the two austerity laws by the social democrats. The standing offices of Romania's two chambers of Parliament decided earlier this week that the no-confidence motion will be put to the vote next Tuesday, June 15, at 10:00 a.m..

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