Romanian Constitutional Court sustains the fiscal austerity measure law amid protest from opposition parties
Romanian Constitutional Court Upholds Fiscal Consolidation Package
The Romanian Constitutional Court has ruled in favour of the government's fiscal consolidation package, a decision that aims to reduce the national deficit and ensure medium-term fiscal stability. The ruling, made on July 22, was unanimous and final, dismissing objections filed by several opposition parties.
The challenged law, part of the consolidation package, includes provisions such as an increase in the value-added tax (VAT) rate and the introduction of mandatory health insurance contributions for pensioners receiving more than RON 3,000 (EUR 600) per month. Opposition parties argue that these measures disproportionately affect vulnerable groups, particularly pensioners.
The Court's decision was based on Articles 1(3) and (5), 47, 48(1), and 56 of the Romanian Constitution. It clarified that taxation on income, including pensions, complies with constitutional principles and does not violate any fundamental rights. The Court also found that the legislator has the power to establish fiscal burdens in the form of social health insurance contributions on any categories of income, including income from pensions.
The decision has sparked criticism from opposition parties, with AUR spokesperson Dan Tanasă accusing the Court of abandoning its role as a guarantor of democracy. Tanasă also criticized the legislative process for lacking transparency and public debate. He further called the Court's decision a legitimization of a gross abuse of power.
Despite these criticisms, the Constitutional Court's decision is final and binding, marking a significant step in Romania's fiscal consolidation efforts.
In other related news, the Romanian government has implemented significant fiscal changes, including increases in VAT and excise rates, as well as a new banking tax. These measures, set to take effect in August 2025, aim to address public finance challenges.
The Romanian Constitutional Court has also been active in other areas, such as limiting the online publication of asset declarations for public officials, which has implications for anti-corruption efforts. It has also played a role in upholding militant democracy principles by excluding extremist candidates from elections.
For specific details about any controversy related to the Constitutional Court's rulings in July 2022, additional or more targeted information might be needed.
The Constitutional Court's decision to uphold the fiscal consolidation package, including policy-and-legislation changes such as increased VAT and mandatory health insurance contributions for pensioners, has generated controversy in the sphere of politics due to concerns about its potential impact on vulnerable groups. The Court's ruling, based on constitutional articles, represents a step forward in Romania's fiscal consolidation efforts within the context of general-news related to the country's ongoing public finance challenges.
