EUROPEAN PAPERS ON THE NEW WELFARE

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The Pension System in Romania

1. Introduction

Though a country in transition, Romania already faces the same problems as the developed countries: the ageing of the population, a low fertility rate and a long period of transition from a state controlled economy to a market economy. The ratio of beneficiaries, including the farmers, to contributors is almost 100%, similar with developed countries.
In 1989, the year when Romanians threw out the Ceausescu communist regime, Romania had a PAYG pension system which covered all the employees.
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