Romanian Constitutional Court Rules Govt Austerity Plan Partially Unconstitutional – Sources

According to the sources, the Court ruled that the provisions concerning the pensions of magistrates are unconstitutional, while those regarding other categories are open to interpretation, but do not require clarification in Parliament.

As per the Constitution, the provisions ruled unconstitutional must be made to conform with the Court's decision within 45 days.

The Constitutional Court debated the unconstitutionality notices Thursday, but decided to postpone the ruling for Friday.

Romania's opposition social democrats and liberals challenged the laws which seek to reestablish budget balance, according to which public sector wages will take a 25% cut and pensions will be lowered by 15%. The social democrats' second unconstitutionality appeal was submitted against the law on recalculating special pensions. Romania's Supreme Court magistrates filed a constitutionality challenge against both laws on June 15.

Last week, International Monetary Fund spokesperson Caroline Atkinson said the process of challenging the austerity plan is normal, but that the IMF requires that the Constitutional Court approves the laws before it disburses the next installment of the loan.

On June 7, Boc sought the Parliament's confidence vote on the country's two austerity bills. On June 15, Romania's lawmakers rejected the no-confidence motion submitted against the Government by the opposition social democrats.

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