The Constitutional Court of Romania (CCR) ruled on Wednesday that the provisions on the special pensions of local officials are unconstitutional after upholding the Government's notification.
The decision was unanimous. The judges found that the law lacks clarity and that there is inequality among its beneficiaries and further that the text of the law does not specify the source of funding.
On December 26, 2015, the Government notified CCR on several aspects of the Law to amend and supplement Law No. 393/2004 on the status of local elected officials - on special pensions for mayors, deputy mayors, presidents and vice-presidents of County Councils.
The notification regarded the breach of several articles of the Constitution referring to the setup of a special regime of privileges for certain local elected representatives, the retroactive granting of special rights and failure to provide financing for the newly-created allowances.
"In the adopted form, there are at least 16,300 possible beneficiaries of the law. The budget effort in 2016 amounts to 469 million lei. (...) The resulting budget deficit stands at 395 million lei, above the deficit approved by Parliament, and tends to worsen the stability of the fiscal budget framework. Moreover, given that the law has retroactive provisions, the number of beneficiaries can be much higher, as well as the impact on the state budget," a document presenting the Government's stance reads. AGERPRES
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