Romania Pension Law Could Pose Medium-Term Fiscal Risk

Romania’s new pension law could result in a less favourable sovereign debt trajectory and weaken fiscal credibility over the medium term if implemented as planned and without offsetting measures, Fitch Ratings says. The eventual impact will depend on the broader direction of fiscal policy, including efforts to exit the ongoing Excessive Deficit Procedure. The new law, which received parliamentary approval on 20 November, is intended to remove inconsistencies in how state pensions are calculated as part of efforts to improve...