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

The President of the Fiscal Council, Daniel Dăianu, argues that a new freeze on pensions and salaries in 2027 is not necessary for Romania to meet its budget deficit target of 5.8% of GDP.

According to him, fiscal-budgetary consolidation can continue without tax increases, provided that the state keeps the rate of expenditure growth under control and applies rational indexation of incomes.

"In 2027, there is no need to implement 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," Dăianu said.

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 believe there are realistic people who would advocate for a freeze on salaries and pensions in 2027 as well."

Dăianu was categorical regarding the idea of a new freeze: "You would have to be on another planet to think about freezing salaries and pensions again in 2027. What you must do, however, is ensure rational indexation, so that you can continue fiscal-budgetary consolidation in 2027. There is no need to raise taxes."