The Coalition for Romania’s Development (CDR), an initiative that brings together the largest business organizations representing Romanian and foreign investors, warns that the draft law on pensions is unsustainable and creates a huge burden for future generations.

"We believe that all Romanians are entitled to a decent pension, but equally important is a balance between pensions and investments oriented towards development and future: quality education, adequate public health services, infrastructure and investment in research”, the Coalition’s press release reads.

According to the government's own estimates, the planned increases will generate additional annual burden of EUR 18 billion, starting in 2022. Thus, in 2022 and afterwards, even under a highly optimistic scenario of annual GDP growth of 8% p.a. over 2018-2022, the new law will still generate an additional burden of about 6.6% of GDP estimated for 2022. This adds to the optimistic projection of the 3% annual budget deficit.

Romania’s lawmakers begin debates on controversial pension law

editor@romania-insider.com

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