Romania's Judicial Pension Reform Challenge: Coalition Stability Tested

Romania's constitutional court has rejected government proposals to raise the retirement age and cap pensions for judges and prosecutors, jeopardizing coalition stability amid attempts to reduce the EU's largest budget deficit. Opposition calls for Prime Minister Ilie Bolojan's resignation while fiscal reforms face legal challenges.

In a significant ruling on Monday, Romania's Constitutional Court dismissed government efforts to adjust the retirement age and pension caps for judges and prosecutors. This decision poses a potential threat to the nation's ruling coalition as it grapples with reducing the European Union's largest budget deficit.

The court's narrow vote, five-to-four, against raising the judiciary's retirement age from around 50 to 65 and capping pensions at 70%, has led to opposition outcry for liberal Prime Minister Ilie Bolojan's resignation. As Romania's judiciary averages pensions well above the national figure, the rejection could stir political instability.

With measures to address the deficit including tax hikes and spending cuts already sparking protests and inflation, the government's legitimacy is under scrutiny. Bolojan remains focused on leadership amid the fiscal challenges hitting state institutions and regulatory bodies.

(With inputs from agencies.)