PM Orban: We'll increase pensions so that we can pay them; increase by 40pct not financially supported

Prime Minister Ludovic Orban stated on Sunday evening that pensions will increase so they can be paid, showing that an increase by 40 percent cannot be financially supported.

"The percentage with which the pensions will increase cannot be publicly announced yet. The Finance Minister has advanced a percentage of 10 percent. He has the best data at the moment. It's like in a company, but if revenues decrease one cannot increase wages. At the moment, collections to the state budget, to the pension budget have decreased significantly, despite the efforts and endeavors we have made. There are no longer the same conditions as if we had an economic growth of 4.5 - 5 percent. It is possible that this year we don't have an economic growth, but, on the contrary, an economic decrease. A negative economic growth, how the economists call it. In this context, one cannot mock people and promise them things one cannot accomplish. We will increase pensions. We will increase them based on a very serious analysis. According to the law on fiscal-budgetary responsibility, the Ministry of Finance is preparing the report regarding the budget and economic situation. We will also make our own economic forecasts for the coming years and consult all the economic forecasts made at European level by the World Bank, by all the entities that have the capacity and we will make the decision to increase pensions. We will increase them so that we can pay them, without printing money," Orban told a broadcast at Romania TV private television station.

The PM argued that an increase by 40 percent would be very difficult to achieve, even if Romania had been in a favorable economic situation.

"We are in an economic crisis that has affected both the revenues to the pension budget and the revenues of the state budget. It is clear that the increase by 40 percent is an increase that cannot be supported financially, because it poses a serious danger to Romania's budget balance, risking to affect Romania's ability to cope with all payments," Orban said.

The Prime Minister also talked about doubling children's allowances.

"We will seek a solution. We cannot afford to double allowances. This is the second doubling that is made after the doubling in March, in the budget debate, in 2019. We will give a guarantee on doubling allowances, but we will have to think of a timetable to increase allowances," Ludovic Orban added.