Romania govt approves IMF-mandated pension reform bill

BUCHAREST, Feb 10 (Reuters) - Romania's centrist government approved a plan to reform the country's outdated communist-era pension system on Wednesday, key to keeping a multi-billion euro International Monetary Fund-led rescue deal on track. Analysts say scrapping thousands of "privileged" pensions of magistrates, army and policemen and raising the retirement age will be a litmus test for the fragile cabinet's ability to enforce painful reforms aimed at safeguarding the recession-hit economy.

Under the IMF-led deal, the two-month-old government of Prime Minister Emil Boc committed to approve the pension bill in February and help it clear parliament, where it controls only a slim majority, by the end of June.

Commentators expect the pension reforms to face strong opposition from the powerful leftists who have advocated a 12 percent hike against a nationwide, IMF-endorsed pay freeze this year.
Meanwhile, some trade unions have threatened to stage nationwide protests this month and next against plans to sack 100,000 state employees while others have demanded compensation equivalent to 12 months' pay for those whose jobs are axed.

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