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PM Orban: We will use all levers to hamper the coming into force of law increasing pensions

Inquam Photos/ Octav Ganea
Ludovic Orban

Prime Minister Ludovic Orban on Tuesday said that the government will use all levers to hamper the coming into force of the law providing for a 40 per cent increase in pensions and allowances, stating that this measure does nothing but "throw Romania into insolvency."

"In fact, what does PSD [the Social Democratic Party] want? That pensions can no longer be paid, that there is no more money for salaries, that there is no more money for investments, that we no longer have money to give to local authorities, or for social spending. This is what PSD wants, and this is the result of our acceptance of the decision of a toxic majority that is slowly destroying Romania every week, through all the aberrations of laws it adopts in Parliament. We do not accept this increase. We will not accept in any form these baseless increases because we cannot accept that the destiny of Romania should be put in parentheses by some irresponsible people who make fun of Romania. We will use all the constitutional and legal resources at our disposal to prevent the coming into force of this economic aberration and to allow Romania to continue its natural course, the normal course," Orban said in Cluj.

According to him, the voted increase risks throwing Romania into an economic crisis.

The Prime Minister also considers that the increase in child allowances is a populist act as well, in the context in which they have already been increased.

He explained that such an increase leads to an inability to pay.

According to him, there is a risk of rising financing costs and borrowing costs.

"I ask our parents and grandparents to take my word for it. The increase of the pension point by 167 lei is the maximum we could afford, while rationally considering the reality of the economy (...)," Orban added.

The plenary sitting of Parliament on Tuesday adopted the budget revision for 2020, including the modification brought by the PSD that increases the pension point by 40 per cent. There were 242 votes in favour, 147 against and 11 abstentions.

The MPs decided, at the proposal of PSD, to repeal the article according to which the pension point increased by 14 per cent, thus remaining in force the Law on the public pension system, which provides for a 40 per cent increase.

The Liberals have announced that they will challenge with the Constitutional Court the draft budget modifications adopted by Parliament.

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