The EU’s position on pensions: only a natural disaster can

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The European Commission clarifies the issue of PNRR renegotiation on pensions, so discussed by PNL and PSD. In a response to Digi24, European officials say the Recovery and Resilience Plan can only be changed in exceptional circumstances. In addition, they explain how the pension reform should be done, stating that they expect to see an encouragement to retire as soon as possible. The PSD Minister of Labor, Marius Budai, reacted, saying that “we are not talking about the renegotiation of the PNRR from the ground up, but about an optimization provided in the European regulation”.

In a reply to Digi24, the European Commission states that only if a country can no longer carry out its PNRR, for exceptional reasons, such as natural disasters of historical proportions, could the Recovery Plan be renegotiated and Resilience.

This would require rather complicated steps that would delay the reforms, the European Commission points out, and this could lead to the possibility that certain objectives may not be met and thus lead to the loss of money from the PNRR.

Under what conditions can PNRR be renegotiated only in exceptional cases, such as major natural disasters, any request to amend the PNRR would greatly delay the implementation of the program;

The European Commission states that, in order to meet that 9.4% of GDP ceiling with all state pensions, a reform must be made as we have undertaken through the PNRR, which will involve, on the one hand, a very and, on the other hand, encouraging late retirement, providing incentives for citizens to retire later.

Special pensions should also be rethought so that they apply on a contributory basis.

Special pensions need to be reviewed and passed on as a contributory principle, and the reform should lead to an increase in the minimum and very small pensions.

The Minister of Labor, Marius Budai, stated on Saturday, at Digi24, that in their response regarding the renegotiation of the PNRR, the European officials referred to the case of total renegotiation of the program, and PSD only wants an “optimization in certain points”, which the regulation The European Commission allows.

Minister of Labor, Marius Budai:

“The commission referred to a total renegotiation of PNRR. We did not say such a thing, we also wrote in the governing program, we also said in the discussions we had in the Coalition, about an optimization in certain points.

By December we have met the milestones we had to meet, we are in the first quarter, I will immediately announce another milestone for the Ministry of Labor, in February we have the agreement with the World Bank signed for technical assistance in pension reform and payroll ⁇

We do not want to jeopardize the implementation of the PNRR in any way. On the contrary, we are extremely determined to implement this PNRR and the PNRR-related reforms.

We, in the coalition, assume to do everything possible for the good of the Romanian citizens, we do not assume to lose money. That 9.4% is not enough to achieve another milestone in the PNRR which means pension reform by addressing inequities in the system.

It has never been said that we want to renegotiate PNRR from the ground up, but optimization is needed. And the European regulation implementing the PNRR provides for this. We are not talking about a renegotiation when a catastrophe happens or I don’t know what other issues “, the Minister of Labor declared at Digi24.