CCR rejects President’s referral on state budget, upholds notification on budget ceilings

The Constitutional Court of Romania (CCR) has ruled on Tuesday that the law on state budget for 2019 is constitutional and has thus rejected the referral from President Klaus Iohannis. The court has uphold however the notification regarding the ceilings for some indicators of the fiscal-budgetary framework for 2019, ziare.com reports.

The first objection of unconstitutionality regarding the state budget was rejected by CCR by majority of votes and the second objection on budgetary ceilings was admitted unanimously. The CCR judges argue, after upholding the notification on budget ceilings, that the legislative course was not observed.

President Klaus Iohannis announced during a press conference at Cotroceni Palace on February 22 that he would notify the Constitutional Court over the 2019 state budget law, arguing ‘it is a budget of national shame.’ The head of state has also slammed the Social Democrat Government, saying it has failed and that it is ruling for Dragnea (editor note: PSD chairman, Liviu Dragnea).

The head of state harshly attacked the PSD-ALDE ruling coalition and the budget it had drafted and voted in Parliament.

President Iohannis told a press conference that Romania is now even more confused after the budget has been approved by Parliament and precisely after the ordinances on justice and on the tax bank.

“One thing is clear, the PSD government has failed. We have problem after problem in hospitals, the education is underfunded. Romania is confused especially after the GEO 114 adopted in complete secrecy at the end of last year. As for the justice, the entire PSD ruling has actually been an attakc against the rule of law in Romania. PSD is not able to rule Romania, PSD is not ruling for the Romanians, but for Dragnea,” Klaus Iohannis stated at the time.

President Iohannis labeled the budget as “the budget of national shame”, arguing “it is unrealistic, overestimated and tardy”.

“They called it the budget of investments, this is the first big lie in the budget law. Everybody wondered why the budget had been delayed so many months. Well, I tell you, they don’t want to make investments for they have no money. PSD will receive RON 150 million as party subsidy, out of the total of 270 million proposed for the parties’ financing. PSD has allotted 20 times more money for itself than last year. They is money for that.”

“A certain victim of this budget is the local administration. Local communities get RON 1 billion less than last year. How can city halls work without this money? There are constitutional issues in the budget, it doesn’t observe the duties assumed to the EU, fundamental rights are broken,” Iohannis added, announcing he would not promulgate the budget law and that he would refer it to the Constitutional Court.