Romania’s Hungarian Minority Party To Abstain From Vote On Social Security Budget Over Pensions

Lawmakers of Romania’s Hungarian minority party UDMR, which is part of the government, said they will abstain from a vote on the 2010 social security budget because they cannot agree with freezing public pensions.

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"We cannot agree to have pensions frozen," said UDMR lawmaker Kerekes Karoly, adding party leaders will have talks with Finance Ministry officials over the matter.

"Until then, UDMR will abstain from voting on the social security budget," he said.

Opposition social democrats and liberals said they will vote against the social security budget unless their amendments are adopted. They said the budget is unrealistic and lowers the pension point to 39.9% of the gross average salary despite a law that states it cannot be lower than 45% of the gross average salary.

The Parliament's labor and health committees decided during debates on the social security budget to adopt an amendment raising the pension point to la 826.2 lei (EUR1=RON4.1620) from the proposed RON732.8.

Labor Minister told lawmakers during debates that the social security budget for 2010 sets the pension point at RON732.8, which sets the average pension at RON701.2. The minister added pensions would be frozen this year at their 2009 level and the budget takes into account a number of 4.69 million pensioners. He also said the average unemployment rate in 2010 will be at 7.3%.

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