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BUCHAREST, Oct 8 (Reuters) – Romania’s top court on Wednesday rejected two challenges brought against measures to reduce the budget deficit, but said it would postpone a decision on two others, increasing uncertainty over the stability of the broad coalition government.
The measures, which the government quickly pushed through Parliament, are part of broader efforts aimed at reducing the fiscal deficit from more than 9% last year to 6% of economic output next year.
The measures, with an overall budget impact of about 10.6 billion lei ($2.42 billion), were divided into five bills to avoid having to reject them all by the court. The court began hearing on September 24 before adjourning the decision on four of the five bills to October 8.
Court postpones decisions on judges’ pension, other measures
On Wednesday, the court rejected challenges to the bills on corporate governance of public enterprises and healthcare, saying they were in line with the Constitution. It again postponed the decision on the two bills to October 20.
These also include the most eagerly awaited decision on the pension of judges. The government wants to gradually raise the retirement age for judges and prosecutors from an average of 48-49 to a standard 65 years, while keeping their pension at no more than 70% of their final salary.
The top court has rejected previous attempts to change judicial pensions.
Other measures include job cuts and remuneration caps for state-run companies, along with other hikes, including higher property and vehicle taxes.
Liberal Prime Minister Ilie Bologen said his government would lack legitimacy if the top court struck down the measures, although he later said he was focused on governing rather than considering his resignation.
Centrist President Nikosor Dan has dismissed concerns over a possible reduction in measures capping pensions for judges and magistrates, saying the government could draft a new law taking into account the top court’s arguments. ($1 = 4.3836 lei) (Reporting by Anna Wlodarczak-Semczuk and Luiza Ili; Editing by Gareth Jones)
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