Romania's Liberals and rival leftists agree to raise pensions by 10% in 2022

Romania's ruling Liberals and their former rivals, the leftist Social Democrats, agreed to raise state pensions by 10% next year along with other social measures, which will cost an overall 13.6 billion lei ($3.1 billion), senior party officials said on Friday.

Romania's ruling Liberals and their former rivals, the leftist Social Democrats, agreed to raise state pensions by 10% next year along with other social measures, which will cost an overall 13.6 billion lei ($3.1 billion), senior party officials said on Friday. The Liberals, their junior partner, the ethnic Hungarian party UDMR, and the Social Democrats have pledged to form and install a coalition government by Nov. 25. However, they have yet to agree on key appointments and cabinet allocations.

Centrist President Klaus Iohannis is expected to officially designate a prime minister on Monday after holding talks with all parliamentary parties. The European Union state has been in policy paralysis since a centrist coalition splintered in September after less than a year in power, threatening economic recovery during the deadliest COVID-19 wave since the start of the pandemic.

The Liberals support interim defence minister and retired army general Nicolae Ciuca as premier. Following a new round of negotiations, Ciuca said on Friday that the parties had agreed on the pension hike, as well as increases in child benefits and the minimum income. A one-off payment will be given to retirees with small pensions to meet higher energy bills this winter.

The future coalition will rotate prime ministers every six months but the Liberals want to go first, while the Social Democrats insist the finance and other major portfolios should go to the party which does not have the premier. ($1 = 4.3826 lei)

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