The leaders of the two ruling parties, Liberal Nicolae Ciuca (PNL) and Social Democrat Marcel Ciolacu (PSD), announced they reached an agreement on supporting the new Pension Law that is thus likely to get endorsed by the lawmakers of the two parties on November 14.

"All aspects related to the Pension Law, including those regarding the funding sources, were ironed out in the meeting of the coalition parties this afternoon. Therefore, the law will be endorsed in Parliament with the support of the two parties," prime minister Ciolacu announced on his Facebook page after the ruling coalition meeting, Cursdeguvernare.ro reported.

The Liberals had previously expressed concerns regarding the financing for the pension law, which envisages an average 40% rise in pensions starting September 2024. The impact on the budget is expected at 3% of GDP for 2025.

The International Monetary Fund (IMF) reportedly recommended Romania, under the Article IV Consultations conclusions to be soon released, to amend the Pension Law in order to smooth its impact on the budget.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)