In the document, the Government says its recently approved law initiatives reducing salaries by 25% in the National Bank of Romania (BNR), Insurance Supervision Commission (CSA), National Securities Commission (CNVM) and Private Pension System Supervision Commission (CSSPP) violate these authorities’ financial independence and constitute a breach of the European Union’s principle of central bank independence.
„We pledge to issue an ordinance suspending the effects of these acts by mid-September,” the Government says in the letter.
In July, the European Commission warned it might initiate infringement proceedings against Romania unless the government renounces the 25% pay cut for central bank staff. Also, the European Central Bank (ECB) urged Romanian authorities to reconsider the salary cut for central bank staff, warning that the measure would be in direct violation of the principle of central bank independence.