The pension rise was initially scheduled for January 1, 2009.
Romania’s social security budget registered a RON 500 million (€140.9 mln) surplus, but this is not a guarantee that Romania will still have a surplus in ten months, Lazea warned. “An increase in pensions, as of November, will not have a significant impact on inflation, but the question is whether this rise is also sustainable next year. It is possible that the consolidated budget deficit will amount to 3 percent next year, if the social security budget is fed by the state budget,” Lazea told NewsIn news agency.
Former Finance Minister Ionut Popescu agrees that the budget deficit could exceed 3 percent of GDP in 2009, triggering higher inflation and, consequently, higher prices. “It is obvious that the announcement regarding an early pension rise is an electoral ploy, as general elections will take place in November, and the Government wants to secure the vote of pensioners,” he said. Popescu warned there is a real risk that the future government is unable to cover this increase, and that it will take funds from education and health to finance the pension rise.
