[Update] Stocks at the Bucharest Stock Exchange plummeted after the data on the ruling of the Constitutional Court leaked to the media.

Indices of Bucharest Stock Exchange moved sharply lower after the news on the ruling of the Constitutional Court on the constitutionality of the Government austerity package broke.

The Constitutional Court of Romania ruled that the article providing 15% cut in pensions does not comply with the constitutional principles, as well as the article providing the recalculation of judges’ pensions.

Under the provisions of Art. 9 in the law on the measures for restoring budget balance, deemed as non-constitutional, since “the entry into force of the law, pensions and escort benefits for pensioners shall be lowered by 15%”.

The same article deemed as unconstitutional provides that “the value of the pension point is set at 622.9 lei for the calculation of the gross value of the pension as well as of the escort allowance for pensioners with effect since the date of entry into force of the Law”.

The Constitutional Court ruled public wage cut of 25% is constitutional.