BULECAREST, Oct 8 (Reuters) – Romania's top court on Wednesday rejected two challenges to measures to cut the budget deficit, but said it would delay a decision on two others, prolonging uncertainty over the stability of the broad coalition government.
The measures, which the government accelerated through parliament, are part of broader efforts aimed at cutting the fiscal deficit to 6% of economic output next year from more than 9% last year.
The measures, with an overall budget impact of around LEI 10.6 billion ($2.42 billion), were split into five bills to prevent the court from striking them all down. The court initially convened on September 24 before postponing a ruling on four of the five bills until October 8.
The court issues rulings on judges' pensions, other measures
On Wednesday, the court rejected challenges to bills on corporate governance of public companies and on health care, saying they were consistent with the constitution. It again postponed ruling on two of the bills until October 20.
These include the most long-awaited ruling on judges' pensions. The government wants to gradually raise the retirement age for judges and prosecutors to the standard 65 from an average now of 48-49, while capping their pension at no more than 70% of their final salary.
The apex court has shot down previous attempts to change judicial pensions.
Other measures include job cuts and pay caps for public companies, as well as higher property and vehicle taxes, among other increases.
Liberal Prime Minister Iliy Bolojan has said his government would lack legitimacy if the top court strikes down the measures, though he later said he was focused on governing rather than considering his resignation.
Centrist President Nicusor Dan has dismissed concerns about a potential city hit by measures capping pensions for judges and magistrates, saying the government could draft a new law that takes into account the top court's arguments. )
