ALDE's Tariceanu: Pension increase by 40pct could be key to economy's recovery

The Chairman of the Alliance of Liberals and Democrats (ALDE) Calin Popescu-Tariceanu maintains that by increasing the pensions by 40pct, from 1 September, the Romanian economy could be relaunched because it would encourage the consumption of goods and services in order to create jobs. "I know, I'm going to be cornered by the people of the system, by the government's politicians, by the analysts who take their balances from the forest, by all the nullities who have not created a job and have not paid a wage in their lives, but the reality is the one I tell you: the increase of pensions by 40pct can be one of the keys to our relaunch. (...) I know that any politician who, in this moment, supports the increase of pensions by 40pct, according to the law, is considered a political suicide. Who would have the courage to make such a proposal when almost half a million of our fellow citizens lost their jobs and the same figure have returned from abroad?!" Tariceanu wrote on Facebook on Thursday. He advocated a "pro market" approach that would not make the growing pensions the greatest catastrophe that could happen to us, but a real opportunity." "Social justice will be done for more than one million pensioners who live on less than 800 lei per month. (...) That's the extra money they're going to get, they're going to get back into the economy quickly, because they're going to buy what the basic necessities. Their money will sustain the fire of the production of goods and will allow the tens of thousands of Romanians who today are in furlough to return to work. There will be at least 2.5 million other Romanians who are now with pensions up to 1,500 lei and who will receive a sum of money that will make their lives better. And they will spend this money on goods of strict necessity and return the money to the economy. The third category is that of those who will be able to save a few tens or hundreds of lei each month. (...) Some of this money can be attracted by government bonds with an attractive interest to finance the real economic recovery," explained Calin Popescu-Tariceanu. He noted that more than one million Romanians currently receive technical unemployment benefit. "It was a necessary social aid in the face of a crisis that froze economies. But these people don't want to stay home on unemployment benefit. Once because money is scarce and, secondly, because they are active people who do not want to stand with their hands out to the Government. But their jobs depend on the consumption of the goods or services they produce. And, in this cycle, a consistent increase in income for as many people as possible can be the key to success. Why give state aid for staying at home when we can encourage consumption by increasing pensions as we have committed?!" Tariceanu added. According to the ALDE leader, "if the governors did not assume that the increase in pensions is only a handout they make to pensioners, it would be easier for them to make the right decision". "A 10pct increase in pensions would actually be a poisoned gift! Because this increase does not even cover the price increase from September 2019 to September 2020, not to mention the inflation that is waiting for us around the corner," Tariceanu reported.AGERPRES(RO - author: Livia Popescu, editor: Claudia Stanescu; EN - author: Maria Voican, editor: Simona Iacob)

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