One day after the business community, AmCham, the Government and the financial institutions welcomed Romania’s upgrade to ‘emerging market’ status, AmCham expresses its deep concern regarding the 40% increase in pensions and the amendments to the social security budget, decided today by the Parliament.

The business sector has always acknowledged the rightful preoccupation of the authorities for the vulnerable categories, and the need to assure adequate living standards for our grandparents and for our parents. Such measures, especially those of an irreversible nature like the pensions’ increase, must be sustainable on the short, medium, and long term and must not be driven by any electoral motive which could hijack Romania’s credibility with its foreign partners.

Despite all warnings regarding the fragile macroeconomic situation, aggravated by the slowdown of the global economy and the national financial effort to support the fight against COVID-19, the adoption of these unsustainable measures represents a dangerous misstep which burdens the active population and future generations on the long run, and deepens social tensions.

It is an unprecedented situation and a confusing message that Romania sends to the investment community, risking the downgrade of the country’s investment ratings, during the same week when the capital market upgrade became effective.

AmCham Romania calls for responsibility from all political decision-makers so that the measures and public policies adopted will not create budgetary imbalances but will contribute instead to a healthy macroeconomic situation of the country.