Why Romanias Court Rejected the Judges Retirement Age Increase

Romanian Court Rejects Judicial Pension Reform, Challenging Deficit Reduction Plan.Romania’s Constitutional Court blocked a key government reform on Monday. The court struck down a plan to raise the retirement age for judges and prosecutors. This decision pressures the ruling coalition’s efforts to reduce the EU’s largest budget deficit.The proposed law aimed to increase the retirement age to 65. Currently, many magistrates can retire around age 50. The government argued this change was necessary to curb unsustainable public spending.

Court Ruling Halts Pension Overhaul on Technical Grounds

The court rejected the proposal by a narrow vote of five to four. It also targeted a plan to cap magistrates’ pensions at 70% of their final salary. According to Reuters, judges and prosecutors currently receive pensions up to 5,000 euros monthly. The national average pension is approximately 600 euros.The rejection was based on a procedural issue. The government did not wait for a mandatory 30-day consultation period with magistrates. This technicality means the court did not rule on the reform’s core principles. The decision has immediate political repercussions, with opposition parties calling for the Prime Minister’s resignation.

Government Vows to Persist with Deficit-Reduction Measures

Prime Minister Ilie Bolojan and President Nicusor Dan confirmed the government will resubmit the law. They pledged to incorporate the court’s procedural feedback. Bolojan defended the reform as essential, stating that early retirement with full pay is an unbearable social and budgetary privilege.This pension reform is part of a broader package of spending cuts. The government fast-tracked these measures through parliament in September. The goal is to shrink the budget deficit from over 9% this year towards 6% in 2025. The judicial reform is also a mandatory requirement for Romania to access crucial European Union recovery funds.

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The court’s decision represents a significant hurdle for Romania’s fiscal consolidation. The government’s commitment to resubmitting the judicial pension reform signals a continuing political battle over austerity measures and privileged systems.

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Why did the court reject the pension reform?

The Constitutional Court rejected the law on technical grounds. The government failed to wait for a mandatory 30-day consultation period with magistrates before approving it. The court did not rule on the substance of the reform itself.

What was the government’s proposed change?

The plan was to raise the retirement age for judges and prosecutors to 65. It also sought to cap their generous pensions at 70% of their final salary. This was aimed at reducing a significant public spending burden.

How do judicial pensions compare in Romania?

Magistrates’ pensions can reach up to 5,000 euros per month. This is in stark contrast to the national average pension of about 600 euros. The disparity has been a central point in the government’s argument for reform.

What is the political impact of this decision?

The ruling is a setback for the coalition government. It has triggered calls from the hard-right opposition for the Prime Minister’s resignation. The government, however, has vowed to resubmit the corrected legislation.

Why is this reform important for Romania’s finances?

Romania is dealing with the largest budget deficit in the European Union. The pension reform was a key part of a broader package of spending cuts designed to address this. The reform is also a requirement to unlock EU recovery funds.