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Romanian govt to hike pensions by 12.5% from January -ruling coalition



Party leaders in Romania announced that the ruling coalition will raise the state pensions by 12.5% beginning January and make cash payments to low-income pensioners throughout the year. This was late Monday 21 November. This is to assist the most vulnerable members of the country in coping with rising inflation.

Leaders from the three coalition parties agreed to differ in the size of cash payments for pensions below 3000 lei per month.

A new measure that was approved this year will allow pensioners who earn less than 1700 lei per monthly to be eligible for social vouchers worth 250 lei every two-months.

As an aid to paying energy bills, Romanians over 60 years old and those with pensions less than 2000 lei will receive an additional 1400 lei payment. It will be split into two tranches.

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Nicolae Ciuca, Liberal Prime Minister, stated that “the period in which we are currently at is one marked by multiple foreign crises”. He suggested that there should be a buffer to counter the effects of high inflation.

Marcel Ciolacu (leader of leftist Social Democrats) stated that the support package would be 26.65 billion lei. It will include indexing child benefits, income for widows and veterans at the inflation rate, as well as indexing child welfare.

The current salary of 2,550 lei is subject to an additional monthly minimum gross wage of 3,000 lei. This should provide some relief for the 1.2 million Romanians.


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The budget revenue collected by the European Union is around 30% of the gross national product. This is considerably lower than the EU average of 46%. This money is spent mainly on wages, pensions and subsidies.

The government will target a 4.4% consolidated budget deficit starting from the 5.7% GDP estimate. The European Commission, International Monetary Fund, and Romanian rating agencies have all warned of the dangers that low revenue collection and a deficit pose to the economy.

Moody’s, Fitch Ratings and S&P Global Ratings rate Romania as the least risky country for investment. Analysts predict that the pace of economic growth in 2023 will be slower than expected.

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