Alexandru Nazare wants pension indexation in 2027, but the decision must be prudent and sustainable

Minister of Finance Alexandru Nazare stated on Sunday, on Digi24, that he wants pensions to be indexed at the beginning of 2027, but the decision must be prudent and sustainable. The percentage increase, including the possibility that it may exceed 5%, will be established after analyzing all budgetary and economic data.

“I want this. I said publicly, several good months ago, that we need to carry out an indexing, a prudent, sustainable one. We will make this decision after we have all the budget data entered into the system. I want us to carry out sustainable pension indexing,” Nazare stated on Digi24.

Nazare warned that unsustainable increases could exacerbate public finance imbalances and inflation. He recalled that a 40% increase in pensions had previously contributed to budgetary imbalances, whose effects were felt, including by vulnerable people. The minister specified that the decision would be a political one and would be made in the Government, after the figures become available.

His position comes in the context in which Minister of Labour Florin Manole argues that pensions must be indexed and that Romania can meet its deficit target without the adjustments being borne by the most vulnerable. Manole called it an injustice that pensions had not been indexed in the past two years and said that the final percentage would depend on INS data, economic forecasts, and budgetary resources.