Constitutional Court throws out some state austerity measures

The Constitutional Court last week vetoed several measures proposed by the Romanian government, including the 15 percent pension reduction.

The nine judges sitting in the court approved other austerity measures, such as the 25 percent salary reduction for public sector employees, while the minimum wage remains, as decided, at RON 600.

Some state compensation and the forfeit sum are reduced by 25 percent, child support and unemployment benefit are cut by 15 percent, while the minimum social pension will be EUR 83.

As the Constitutional Court threw out the pension measure, other solutions will have to be found to secure Romania’s next IMF loan installment.

According to government sources, the counterbalancing solutions are believed to include VAT and flat tax hikes.

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Corina Dumitrescu