500 Romanian retirees protest pension freeze
A Romanian pensioner blows a whistle during a protest in freezing temperatures in Bucharest, Romania, yesterday. Hundreds of pensioners gathered at the government headquarters to protest against the announced freeze in pension levels in 2012 and saying many cannot survive on the current income levels. The average pension in Romania is about ¤165 (US$224 dollars, $19.3 billion) according to official statistics, with price levels for many basic goods at the European Union level. (Photo: AP)
BUCHAREST, Romania
Hundreds of retirees from all over Romania have gathered outside the government headquarters to protest a freeze on pensions.
“Don’t bury retirees alive!” and “Down with (President Traian) Basescu” they yelled yesterday during the two-hour protest.
Last week, Basescu said the government couldn’t afford to increase pensions this year. That came after the International Monetary Fund said Romania could afford to slightly raise pensions because it had reduced public spending.
Romania signed up for a ¤20 billion (US$26.5 billion, 2,283 billion) loan with the IMF, European Union and World Bank in 2009 to help pay salaries and pensions, when the economy shrunk by more than seven per cent.
Last year the government hiked sales tax from 19 per cent to 24 per cent, and cut public workers salaries and welfare benefits to reduce the budget deficit. Romania has around six million retirees.