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Romanian government mulls pension increase during pandemic


While Romania still has no budget for 2021, the country’s Constitutional Court ruled on Wednesday that the Parliament needs to clarify a law requiring a 40% increase of pensions. The government wants a much lower increase, in the current economic context, and it may now have the Parliament’s support.
The dispute goes back to 2019 when the then-socialist majority adopted the Pension Law, which included a provision to raise pensions as of September 2020 by a whopping 40%.
The high increase has been criticised by international institutions and analysts since the law was adopted. However, given the unprecedented crisis generated by the coronavirus health crisis, scrapping the proposed raise became an urgency, particularly as credit agencies warned they would cut Romania’s ratings to junk status. ....

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