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PM Orban says pensions to rise by whopping 14 pct Gov't pledges to finance

Inquam Photos / George Calin
Ludovic Orban

Prime Minister Ludovic Orban announced Friday that the government will adopt a decision to increase pensions by 14 percent, adding that rising retirement benefits was a "difficult decision", but that the Executive commits to this measure and provides guarantees that the amounts will be effectively paid.

"The health crisis has caused an economic crisis. Despite that - and I say this again - although I know of no other European country to have taken a similar decision, the government will increase pensions by a substantial 14 percent. It is an extremely large rise, which we commit to be able to finance, both next year and in the years to come. As far as subsequent increases are concerned, any other decision on this matter will be made only based on extremely serious economic analyses. Let me remind you that Romania needs access to financing with minimal costs in order to ensure the necessary financial resources for covering the expenses of the state budget, the pension budget, the unemployment budget and other budget categories," the Premier said in southern Craiova.

The head of the government urged pensioners to understand that an increase percentage higher than 14 is impossible at this time, and pointed out that "any increase in pensions that does not take into account the evolution of the economy and the effective capacity of the economy to sustain such growth will backfire not only against our parents and grandparents, but also against the general interest of the Romanian society."

Orban also showed that budget revenues are by almost 30 billion lei less compared to the figure provided for in the 2020 State Budget Law.



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