Romanian Labor Min Says Social Insurance Budget Can Support Pension Hike

Romanian labor minister Paul Pacuraru on Thursday said for RFI Romania that the budget for social insurances has the necessary funds to hike pensions, despite of statements from analysts and politicians, and that the budget is far from being in the red.

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“I am pleased to inform that the social insurance budget is currently registering a surplus of funds,” the minister said.

Pacuraru said that the 2008 social insurances budget would probably close without requiring any additional funds from the state budget.

“What will happen from 2009 onwards is a very complex issue and depends mostly on the governing party and its priorities,” the official added.

The hike in the pension point stipulates transferring some EUR7.3 billion from the state budget until 2017, with a forecasted deficit of EUR6 billion between 2008 and 2020, according to an analysis made by the Ministry of Economy and Finance on the sustainability of the public pension system.

The value of the pension point grew from RON416 to RON541 in November 1, 2007. A second increase took place in January this year, when the pension point rose to RON580.

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