Romanian Constitutional Court publishes the reasons on austerity measures decisions

The pension’s ratio, set by the contribution principle, is a won right. Therefore, reducing the pension cannot be accepted, not even temporary. This is how the Romanian Constitutional Court motivates its decision to declare the law draft addressing the 15% cut in pension unconstitutional. This cut in pensions was part of the austerity measures’ package for which the Boc Cabinet took responsibility in the Parliament.

By paying the sums of money as contributions to the social insurances’ budget, the person has practically won the right to earn a pension of the amount resulted by applying the principle of contributions. The contribution is essentially the right to pension and any derogation, be it temporary, from the state’s obligation to pay the total amount of the pension resulted after the principle was applied affects the substance of the right to pension”, according to the motivation published by the Romanian Constitutional Court (CCR) on its website.

Besides the demands of the Human Rights Convention, the Romanian Constitution entails explicitly the right to pension (article 47, paragraph 2) as a fundamental right, according to the cited source.

On the other hand, the CCR argues that the decision to cut 25% off salaries respects article 53 from the Constitution, where the redraw of certain liberties and rights is mentioned, including the motivation of the national security defence, which includes a social and economic component. CCR recalls a decision from November 2009, which reads that a global financial crisis situation could affect, in the absence of adequate measures, the state’s economic stability and, implicitly, the economic stability.

The CCR argues that it was decided to overrule the proposal of adjusting and cutting the magistrates’ pensions because the risks such a profession entails must be backed by financial well-being to secure the independence of justice and guarantee the rightful state.

The judges overrule the Executive’s arguments addressing the huge difference between the biggest and the smallest pensions paid by the state and recommends the government to avoid the practice of granting unjustified additional salary rights during the last month in employment before the date of retirement.

CCR admits that certain pensions have two components: the contribution pension and a state supplement. The contribution part is supported by the social insurances’ budget, while the rest is being paid from the state budget. The latter depends on the state’s policy.