A draft ordinance inked by the Finance Ministry and consulted by Economedia.ro establishes the framework for fiscal measures to be applied in 2025, envisaging that state pensions, special pensions, and salaries of public sector employees will be temporarily frozen. 

All pensions were scheduled to increase by 12%, which would have led to a budgetary impact of RON 19 billion (EUR 4 billion, 1% of GDP) in 2025. Also, salary increases were scheduled for certain public sector employees, which would have brought an additional cost of RON 9 billion (EUR 2 billion, 0.5% of GDP). 

At the same time, the ordinance cuts vacation vouchers and other awards, suspends public sector hiring, and caps certain allowances.

The document obtained by Economedia.ro is at the draft stage and could still be modified, even considerably, after the appointment of a new government. The plan was for this document to be developed and approved by the future government, but difficult political negotiations in recent days are delaying the formation of the new executive.

iulian@romania-insider.com

(Photo source: Juan Moyano/Dreamstime.com)