Daniel Dăianu: there is no need to freeze pensions and salaries in 2027

Daniel Dăianu, president of the Fiscal Council, argues that Prime Minister Ilie Bolojan does not need to resort once again to freezing pensions and salaries in order for Romania to meet next year's budget deficit target of 5.8% of GDP.

According to Dăianu, deficit reduction can continue without tax increases and without income freezes, provided that the state keeps expenditure growth under control and applies a rational indexation of incomes.

"In 2027, there is no need to proceed with a new freeze on salaries and pensions. We have relatively high inflation — the highest inflation in the European Union. Nominal GDP will also grow by a significant figure in 2027. If we maintain a dynamic of budgetary expenditure, salaries and pensions that does not exceed the rate of nominal GDP growth, there will be no problem," said Dăianu.

He added: "Indexation can be applied in such a way that we continue fiscal-budgetary consolidation and achieve a deficit of 5.8. I do not think there are any realistic people who would advocate for a freeze on salaries and pensions in 2027 as well."

The president of the Fiscal Council was unequivocal: "You would have to be on another planet to think you could freeze salaries and pensions again in 2027. What you do need to do, however, is apply rational indexation, so that you can continue fiscal-budgetary consolidation in 2027. There is no need to raise taxes and levies."