Romanian Constitutional Court Dismisses Opposition Claim On Public Sector Wage Cuts

The Court ruled unanimously that the salary reduction is constitutional and the decision, which is final and mandatory, will be forwarded to the head of state, the prime minister and the Parliament.

Several liberal and social democrat senators challenged with the Constitutional Court the spending cut law which slashes salaries in the public sector by 25%, after the institution ruled unconstitutional the Government's decision to reduce pensions by 15%.

Following the Court's ruling on pension reductions, the Government decided to increase the value added tax to 24% as of July 1, from 19%, to keep the country's budget deficit below the cap of 6.8% of GDP agreed with the International Monetary Fund. Social democrats also disagreed with the measure and addressed the Ombudsman a request to challenge with the Constitutional Court the Government emergency decree which hikes the VAT.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.