BUCHAREST, Oct 8 (Reuters) – Romania’s top court on Wednesday rejected two challenges brought against measures to lower the budget deficit but said it would postpone a decision on two others, prolonging uncertainty over the stability of the broad coalition government.
The measures, which the government fast-tracked through parliament, are part of wider efforts aimed at bringing down the fiscal shortfall towards 6% of economic output next year from more than 9% last year.
The measures, with an overall budget impact of roughly 10.6 billion lei ($2.42 billion), were broken down into five bills to avoid having the court strike all of them down. The court initially met on September 24 before postponing a ruling on four of the five bills to October 8.
COURT POSTPONES RULINGS ON JUDGES’ PENSIONS, OTHER MEASURES
On Wednesday, the court rejected challenges to bills on corporate governance of public enterprises and on healthcare, saying they were in line with the constitution. It again postponed ruling on two of the bills until October 20.
These include the most eagerly awaited ruling on judges’ pensions. The government wants to gradually raise the retirement age for judges and prosecutors to the standard 65 from an average now of 48-49, while capping their pension at no more than 70% of their final salary.
The top court has struck down previous attempts to change judicial pensions.
Other measures include job cuts and remuneration caps for state companies, as well as higher property and vehicle taxes, among other increases.
Liberal Prime Minister Ilie Bolojan has said his government would lack legitimacy should the top court strike down the measures, although he later said he was focused on governing rather than considering his resignation.
Centrist President Nicusor Dan has dismissed concerns over a potential strikedown of measures capping pensions for judges and magistrates, saying the government could draft a new law taking the top court’s arguments into account. ($1 = 4.3836 lei) (Reporting by Anna Wlodarczak-Semczuk and Luiza Ilie Editing by Gareth Jones)
