Romania’s government officials has continued to defend the December emergency decree, which received criticism as it raised capital requirement for pension fund managers and caused falling asset prices.

According to Reuters, the decree was approved without an impact assessment or public debate and introduced turnover taxes for energy and telecoms firms, capped gas and electricity prices and raised capital requirements for mandatory private pension fund managers.

Furthermore, the government is looking to implement the legislations to other industries which are affected by the taxes but has not made changes.

The reform, launched by the government at the end of December 2018 to the mandatory second pillar pension system, introduces an additional 10 per cent in capital requirements.

The news agency reported that Finance Minister Eugen Teodorovici told lawmakers: “We are currently involved in separate debates with each sector but I want to be very clear ... we will promote alternatives to the decree only if they will be fair for citizens and correct for the Romanian economy.”

The finance ministry and the central bank are currently working on finding an alternative to an introduced tax on banks’ financial assets tied to money market rates, which according to the central bank interferes with monetary policy.

Reuters said the decree has driven the Romanian currency and stocks to multi-year lows and has met critique from both employers and unions, as well as from international organisations such as the European Central Bank and the European Bank for Reconstruction and Development.

The capital requirements have previously been called “unreasonable” and “devastating” by PensionsEurope and the Romanian Pension Funds' Association (APAPR), as they could have severe consequences both the economy and Romanian pensioners.

In January, PensionsEurope CEO/secretary general Matti Leppälä said: “The Romanian pension funds have also played an important role in financing the Romanian real economy, providing capital to SMEs, corporates and infrastructure project to grow and create jobs. The envisaged reform puts at serious risk the Romanian economy and stability as a whole.”

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