Romania's Judicial Pension Reform Faces Setback

Romania's Constitutional Court has struck down government plans to increase the retirement age and cap pensions for judges and prosecutors. This decision raises concerns about the stability of the ruling coalition amidst efforts to address the EU's largest budget deficit through measures including tax hikes and spending cuts.

Romania's highest court dealt a blow to governmental plans on Monday by rejecting proposals to raise the retirement age for judges and prosecutors to 65 and cap their pensions.

In a narrow 5-4 decision, the Constitutional Court struck down these proposals, casting doubt on the ruling coalition's efforts to manage Europe's biggest budget shortfall. This fiscal plan is part of broader attempts to curb the soaring deficit, currently exceeding 9% of GDP.

Hard-right opposition critics called for the resignation of liberal Prime Minister Ilie Bolojan, while the government commits to drafting new, compliant legislation.