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December 1, 2021

Labour minister: Pension hikes, main cause of social insurance budget deficit

The 50 per cent increase in pensions in 2007-2008 is the main reason why there is a chronic deficit in the social insurance budget this year, Labour Minister Sebastian Lazaroiu said yesterday, during a conference organised by the National Union Bloc (BNS). The minister added that loans taken by Romania to pay pensions, at the current interest rates, will take the country on the verge of collapse in the following two-three years. “We are borrowing money from markets and this is not a good time. The interest rates are higher than in 2010, although Romania has earned some credibility on financial markets, which shows that the international context is not favourable,” the minister added.

Lazaroiu also called for an end to populism and demagogy. “The international context forces us to be extremely cautious,” he added.

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