Romania's Supreme Court said on Thursday it had irrevocably overturned a Finance Ministry decision to cut magistrates' pay, highlighting the battle the government faces in cutting spending to qualify for foreign aid. The court rejected an appeal by the ministry against a similar ruling by a lower court last month.
The budgetary cost of the ruling is relatively small at some 140 million euros a year, but it points to strong resistance to spending cuts which are vital to ensure Romania continues to receive aid led by the International Monetary Fund. It will become increasingly difficult for the government to make cuts as the ruling parties vie for support ahead of the presidential election later this year, analysts said.