April 13. 2024. 5:48

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Romania takes a step closer to €3 billion Recovery Fund tranche

Romania took a step closer to getting the much-awaited third €3 billion tranche from the Recovery Fund after the Senate greenlit a government’s bill on the so-called “special pensions”, an EU prerequisite to unlock funds.

The “special pensions” law stipulates that the nearly 10,000 beneficiaries – magistrates, policemen, soldiers, airmen, and court clerks – will not receive an income higher than their last salary at the age of 65, nor will they be able to accumulate more than one income established by special laws.

Another change concerns imposing a 15% tax on the amount that does not come from contributions.

Previously, the European Commission had warned the coalition government in Bucharest that it risked losing the EU funds unless changes in “special pensions” were made.

According to the EU executive, a previous draft law would result in “only very limited savings and would not sufficiently address fiscal sustainability and, in particular, equity”.

The bill has been sitting for months in the Senate with back-and-forth comments from the Commission and the World Bank.

According to government sources, discussions with the EU Commission will continue to avoid further misunderstanding while on military pensions; the situation in other NATO countries will be discussed with EU officials.

(Maria Smarandache | EURACTIV.com)