Romanian Social Democrats stoke concerns over future of Pillar II pension funds
A comment by Social Democratic (PSD) Minister of Labor Marius Budai regarding privately managed pensions (Pillar II) raised concerns about the government’s plans in this regard. Minister Budai said the public pension system deficit will be RON 12 billion (TRUE 2.4 billion) this year, exactly as much as the mandatory transfers to privately managed pension funds (Pillar II). However, he stressed that he had no intention of nationalizing private pension funds.
Social Democrat leader Marcel Ciolacu took the opportunity to complicate the situation and fuel concerns about the uncertain future of the money transferred to Pillar II. “I don’t think that Pillar II should be abolished, but on the contrary, we must also develop in terms of private insurance, develop the whole chain. What has been done for the year 2022 is insufficient, all the legislation must be developed and we must give it a completely different scope,” Ciolacu said without further explanation.
In this vague context, the deputy of the reformist party USR Claudiu Năsui, former Minister of Economy, warned that the coalition of social democrats and liberals was planning “to seize the money of the Romanians of Pillar II”. According to him, a new plan for the nationalization of Pillar II is being prepared by the Ministry of Finance led by Social Democrat Adrian Câciu, but, compared to the Dragnea era, the plan “is now much more treacherous and is supported by Liberals and President Klaus Iohannis.
(Picture source: Gov.ro)