Romania's Opposition Social Democrats Dismiss Pension Law As Unconstitutional

The party said the draft unitary pension law approved by the Government infringes the Constitution, as well as certain European conventions, adding the country's laws stipulate the right to work cannot be restricted.

Social democrat Florin Iordache, the party's Justice Department vice-president, said the initiators of the law infringed certain provisions of the Constitution and European norms.

Iordache added the new law stipulates the recalculation of pensions set by special laws and paid before the approval of the new pension system, adding this aspect is unconstitutional as it breaches the principle stating laws cannot be applied retroactively.

The social democrat deputy also said the retirement age set in the draft law, namely 65, is not a condition imposed by the European Union.

The Government Wednesday approved the draft law reforming the country's public pension system and the act will be sent to Parliament for urgent debates and approval.

Prime Minister Emil Boc said the law is needed so that Romania can continue to pay pensions because the current system is unsustainable and the country would have to borrow billions of euros in a few years just to pay public pensions if the current system were kept. The prime minister reminded the country had to take money from the state budget to cover its pensions budget both in 2009 and 2010.

Under the new pension law, special pensions, such as those of lawmakers military, law enforcement and intelligence services staff, will be recalculated and therefore reduced. Boc said the recalculation of special pensions would generate savings of EUR500 million to EUR800 million.

The prime minister said Tuesday special pensions would be recalculated within five months starting with the coming into force of the unitary pension system law, without any exceptions, but considering the fact that the state has borne some of the social contributions for certain categories.

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