Romania’s Pension Sys Needs Sound, Though Painful Principles - PM

"The pension system law is vital, commonsensical and I assure you it will be promoted by the government. It will be based on sound principles, although painful ones. The most important principle is contribution, namely the amount one contributes to the social security system. The pension will be set by the contributions, not the privileges the system has created in its 20 years of existence depending on the influence various social categories have had on laws," Boc said at the launch of aa report by a presidential commission on social and demographic risks.

Boc added such an action will be difficult, but necessary to correct the inequities of the system in time.

Also, the prime minister referred to the reform of the entire social security system, which, he said, is not aimed at the people with real needs right now.

"There are many people with needs and that is where we have to aim with social security, with those social protection measures. Unfortunately, there are considerable financial resources going where they are not needed. For this, we need firm decision-making," the prime minister added.

Referring to the report launched at the presidential palace, Boc said it is a pragmatic and professional document, which contains "an exact diagnosis" of the social security system in Romania.

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