Pensions frozen for the third year in a row? Public debt puts pressure on the budget

Pensioners' incomes remain uncertain amid Romania's rapidly growing public debt. According to data from the Ministry of Finance and the Fiscal Council, the debt-to-GDP ratio is on an upward trend, limiting the Government's ability to increase social spending.

How public debt is evolving

• Current level: 60.01% of GDP
• Estimate for 2027: 63.3% of GDP
• Estimate for 2028: 63.9% of GDP
• Estimate for 2030: approximately 70% of GDP

This trajectory places direct pressure on the state budget and reduces the room for manoeuvre when it comes to any potential pension increases.

How much pensioners are losing due to the non-application of the indexation law

The law providing for pension indexation has not been applied, resulting in tangible financial losses for older people. Calculations are based on the reference point value established in 2024, set at 81 RON. Had indexation been applied over the two years that followed, the theoretical value of this point would have reached 98 RON.

• Average monthly loss: 535 RON
• Average annual loss: 6,420 RON
• Total cumulative loss over two years: 12,840 RON

Inflation adds further pressure

On top of the lack of indexation, an inflation rate of 8.2% continues to erode pensioners' real incomes, reducing the purchasing power of already diminished sums. The combination of stagnating incomes and monetary depreciation is worsening the financial situation of older people, and any decision regarding a possible pension adjustment remains, for the time being, in the hands of the next governing coalition.