Entrepreneurs voice concern over the pension increase

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The Coalition for Romania’s Development (CDR), the largest confederation of business associations in Romania, has voiced the entrepreneurs’ concern about the “increase in public expenditures for pensions or other categories of expenditures that do not have a source of funding provided for them”.

The business confederation has called on the Government to act prudently in spending public finance.

“The Coalition for the Romania’s Development launches a call to responsibility to the Government and Parliament of Romania in managing the growing challenges posed by the health and economic crisis that our country is going through and signals that Romania’s economic health depends on prudence and efficiency in public spending and a budgetary policy that prioritizes investments with a multiplier effect in the economy,” according to the release.

The employers’ confederation has also warned the Cabinet about the option of increasing public spending, especially in the context of the forthcoming local and parliamentary elections.

“The CDR reiterates these principles in the context of the upcoming local and parliamentary elections, in order to direct the attention to the risk of deepening the budget deficit through populist measures, taken for electoral reasons. Given the global economic slowdown and the contraction of the domestic economy predictable since the first half of this year, the business milieu is deeply concerned about the lack of sustainability of the increase in expenditures for pensions or for other categories of expenses that have not provided a source of financing.”

Also, the employers’ confederation emphasizes the urgent need to optimize the number of employees in the public administration.

“At the same time, CDR reiterates the urgency of the reforms that will result in streamlining budget expenditures, including public administration reform, in the sense of streamlining public services, optimizing the number of employees and professionalizing officials,” the Romanian Coalition for Development said in the release.

According to the budget revision, released on August 19 in the Official Gazette, the pension point is increased by 14% from September 1, to RON 1,442.

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