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| A LONG DEBATED LAW (19.07.2007) |
| (2007-07-19) |
| Last updated: 2007-07-20 16:06 EET |
While the absurdly egalitarian communism never let them become rich, the never-ending post-communist transition actually let them get poorer and poorer. Romania’s 6 million pensioners account for the largest underprivileged category in this country. An average pension of about 120 euros hardly covers daily needs, including medicine and bills. The law passed last month by the deputies provides for increases following which the average pension will come close to 200 euros in 2008 and to 250 euros in 2009.
Farmers’ pensions, which are incredibly low, not exceeding several tens of euros, are to go up by 50% on September 1st. Given that the budget effort will stand at 2 billion euros a year, both economic analysts and president Traian Basescu said they were sceptical about the funding sources. Basescu still promulgated the law on Wednesday but used the opportunity to describe as incompetent the Liberal minister of finance, Varujan Vosganian, and labour minister, Paul Pacuraru, viewing as unconvincing the letter in which they tried to explain how they are going to finance the pension increase. Traian Basescu:
“I believe they are incompetent because instead of an economic analysis, which I had asked them to produce, I received an answer signed by Varujan Vosganian and Paul Pacuraru which was laden with political goals and statements.”
Basescu warned that according to an analysis made by presidential experts, after these increases the budget deficit will reach 30 billion euros by 2013. Visibly irritated but trying to keep calm, minister Vosganian replied:
“I would like to tell you, respectfully, that starting in 2010 the social security budget will again be exceeded; in 2009 the economic growth and the results of current trends will secure a pensions’ increase and that in 2008 none of the programmes we have established will be influenced negatively.”
In his turn, Labour Minister Pacuraru is counting on the continuation of the remarkable economic growth Romania has seen in the last several years. Also, he voiced doubts as to the competence of the people who worked out the president’s information reports:
“I find the president’s calculation formula exaggerated. Technically, I know he doesn’t have the necessary data to work out a relatively fair prognosis for 2013. There can be no talk of a 30 billion deficit. All available facts show that we should expect an economic growth, an increase in the number of employees and salaries, and an increase in the contributions to the budget, which makes us think that resources for the pensions’ increase are secured by the pension system and there will be no need for subsidies from the public budget.”
(Bogdan Matei)
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