Romania's Judicial Pension Reform Faces Legal Setback

Romania's Constitutional Court rejected a governmental policy to raise the retirement age and cap pensions for judges, citing technical reasons. This decision pressures the ruling coalition to reduce the EU's largest budget deficit. Prime Minister Ilie Bolojan intends to address court concerns and reintroduce the policy.

On Monday, Romania's Constitutional Court invalidated a government proposal aimed at increasing the retirement age and capping pensions for judges and prosecutors, highlighting political tensions as the ruling coalition attempts to manage the European Union's biggest budget deficit.

The court, in a narrow decision with five votes against four, struck down the plan to extend the judiciary retirement age to 65 from the current average of around 50, and to cap pensions at 70% of their final salary. Judges and prosecutors in Romania typically receive monthly pensions of up to 5,000 euros, significantly higher than the national average of 600 euros.

The court's rejection was based on procedural technicalities, arguing the government failed to observe the 30-day period for obtaining a nonbinding magistrate notice before passing the law. Undeterred, Prime Minister Ilie Bolojan and President Nicusor Dan committed to reintroducing the proposal, emphasizing that such pensions are unsustainable and contribute to socioeconomic burdens.