- Law will cap magistrates’ pensions at 70%
- Magistrates will retire at 65 over a phased out period
- Romania’s PM vows to recover 231 million euros of EU money
Romania’s Constitutional Court on Wednesday approved a law that will curb magistrates super pensions and right to early retirement ending months of tension with the government and protesters.
The positive ruling came after the court delayed making a decision five times amid pressure from magistrates and High Court judge Lia Savonea who did not want to give up their privileges.
Romanian President Nicusor Dan welcomed the ruling which is a victory for Prime Minister Ilie Bolojan who dared confront magistrates over their perks and privileges which included retiring at 48 and pensions as high as their salaries which cost the government millions of euros a year.
Bolojan said: “It confirms the correctness of the Romanian Government’s approach. The reform of special pensions was insistently demanded by the Romanian society and we are taking a big step towards fairness. At the same time…. we will take steps to recover the money from the EU, he said.
„I welcome the ruling… The recalibration of the way these pensions are calculated is a gesture of equity that our society wants. I assure all magistrates that their work is appreciated and their importance in the state architecture is fully recognized,” the Romanian president said in a statement.
Romania’s government drew up a draft law on Nov. 28 to reform the pensions which Parliament passed in early December. Key changes include capping pensions at 70% of the final net salary and gradually increasing the retirement age to 65 over 15 years, starting in 2026.
His law passed parliament but magistrates objected and the Constitutional Court postponed making a decision five times.
Wednesday’s ruling is a major blow to Savonea, Romania’s most powerful judge who is seen as an anti-reformist.
In the same ruling, the court rejected a request to refer the law to the European Union Court of Justice. The request was made by Savonea, and by Constitutional Court judge Gheorghe Stan.
The 6-3 ruling was surprisingly decisive after five tactical delays. Romania stands to lose 293 million euros in EU funds for failing to reform pensions.
The decision to reject the referral to the Court of Justice of the European Union was taken by a predictable majority of 5-4.
