Romanian lawmakers passed the special pension reform requested by the European Commission on Wednesday, though several last-minute changes diluted the law.
The special pension reform is an essential milestone for Romania’s third payment request under the national recovery plan. While Romania has already received the first EU recovery payment, the Commission has frozen part of the second payment due to unfulfilled milestones.
Before the Wednesday vote, MPs voted several last-minute changes that ensured some provisions, including the retirement age, would not be subject to change for the upcoming five years – to allow magistrates and military personnel to retire under the current law.
The bill’s final version also did not fully implement the Commission’s recommendations. For example, it cites that special pensions that exceed the average net salary (4,000 lei – around €800) will be subject to a 15% tax instead of the 30% requested by the European Commission.
Lawmakers also amended the bill that prohibits the accumulation of state pension and salary, introducing exceptions for senators, deputies, National Bank, National Agency for Fiscal Administration, National Authority for Management and Regulation in Communications, and employees in the health and education sectors.
The social democrats (PSD) and the liberals (PNL) justified the introduction of this amendment, arguing that “allowing the pension and the salary combination could represent an incentive for competent people to engage in political life and retain public positions”.
Prime Minister Marcel Ciolacu defended the right of former Prime Minister Nicolae Ciuca to receive a pension as a former military official. “What do we want? To decapitate the National Bank and all the institutions subordinate to the Parliament because we feel like it and take away a right from some people”, he said.
Opposition parties criticised the last-minute amendments, arguing that the special pensions were not reduced.
As for the budget savings, the government representative said these remained confidential. “An impact has been made, but there is an article regarding data confidentiality”.
The elimination of special pensions has already been criticised by those who would lose out on such a preferential scheme, notably magistrates, DNA and DIICOT prosecutors, policemen and military personnel.
Last week, The Bucharest Court of Appeal, the Bucharest Court, and other courts decided to suspend their activity indefinitely due to the draft law.
On Tuesday, DIICOT also announced the suspension of its activity, while the National Police Union organised a protest, claiming that the lawmakers want “to destroy the system of defence and public order.
(Cătălina Mihai, Sebastian Rotaru | EURACTIV.ro)
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