Wednesday, August 27, 2008

Romania to Up Pensions from November 1

27 August 2008
Bucharest _ The Romanian government is to raise state pensions by almost 20 percent from November 1, in a move seen by most analysts as a way for drawing votes ahead of parliamentary elections.

The decision follows plans by Romania's centrist government last year to nearly double pensions between 2008 and 2009 which had sparked criticism from rating agencies and some economists because of their potential impact on Romania's sizzling economy.

“The pension hike will have a significant impact on inflation. Furthermore, the government decision is a way for attracting the electoral interest from retired people, ahead of parliamentary elections scheduled for the end of November," says economic analyst Radu Soviani.

Average monthly pensions are just over €100 now, roughly one-third of Romanians' average net wages.

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