PUPS leader under fire for pensions U-turn

IMF representatives have slammed plans to increase pensions to 70 percent of wages in 2009, a plan that has since been shelved by the initiator Jovan Krkobabic. Following the deputy prime minister’s announcement that the increases could wait until 2010, opposition MPs have retaliated by accusing Krkobabic of breaking pre-election promises. PUPS leader under fire for pensions U-turn His United Pensioners Party, PUPS, campaigned on a promise to bring the pensions to their legal level, but in a news conference yesterday, Krkobabic said this will have to be postponed, and blamed the global financial crisis. Economist Miodrag Zec told B92 that it was possible that the IMF delegation’s arrival in Belgrade had persuaded Krkobabic to postpone his plans. However, from a political point of view, the deputy prime minister’s announcement has sparked an angry reaction, with his explanation that “because we entering new problems, we don’t want to bring the country down,“ cutting little ice in parliament. He added that “we have to move that project a bit, maybe until the end of 2010.“ Opposition MPs responded, pointing out that pension increases had been one of the government’s pledges when forming the government. They then mentioned Krkobabic’s past, with Liberal Democratic Party (LDP) MP Slobodan Maras pointing out that the head of the Pension Fund in the Nineties had been none other than the deputy prime minister himself. “Who drained the Pension Fund, when did it happen? The Nineties. Who worked there? Deputy Prime Minister Jovan Krkobabic. And there’s another thing. During the Nineties, the practice of not paying tax and contributions was introduced. Pensioners in the country remember fine well who emptied the pension funds,“ said Maras. PUPS MP Djura Peric came to his party leader’s defense, stating that Krkobabic had chaired the Independent Workers’ Fund Board of Directors, which had worked well. He added that the minister had not promised that the pension increases would happen in 2009, but that they would rise in the coming period, which was, in fact, 2010. Krkobabic said he had not discussed the issue with his coalition partners as there was “no point agreeing on what’s already been agreed.“ “The whole forecast isn’t anyone’s pre-election pledge or anyone’s personal will or subjective opinion. That projection is the result of a coalition agreement,“ he asserted. Jovan Krkobabic (FoNet, archive)

PUPS leader under fire for pensions U-turn

His United Pensioners Party, PUPS, campaigned on a promise to bring the pensions to their legal level, but in a news conference yesterday, Krkobabić said this will have to be postponed, and blamed the global financial crisis.

Economist Miodrag Zec told B92 that it was possible that the IMF delegation’s arrival in Belgrade had persuaded Krkobabić to postpone his plans.

However, from a political point of view, the deputy prime minister’s announcement has sparked an angry reaction, with his explanation that “because we entering new problems, we don’t want to bring the country down,“ cutting little ice in parliament.

He added that “we have to move that project a bit, maybe until the end of 2010.“

Opposition MPs responded, pointing out that pension increases had been one of the government’s pledges when forming the government.

They then mentioned Krkobabić’s past, with Liberal Democratic Party (LDP) MP Slobodan Maraš pointing out that the head of the Pension Fund in the Nineties had been none other than the deputy prime minister himself.

“Who drained the Pension Fund, when did it happen? The Nineties. Who worked there? Deputy Prime Minister Jovan Krkobabić. And there’s another thing. During the Nineties, the practice of not paying tax and contributions was introduced. Pensioners in the country remember fine well who emptied the pension funds,“ said Maraš.

PUPS MP Đura Perić came to his party leader’s defense, stating that Krkobabić had chaired the Independent Workers’ Fund Board of Directors, which had worked well.

He added that the minister had not promised that the pension increases would happen in 2009, but that they would rise in the coming period, which was, in fact, 2010.

Krkobabić said he had not discussed the issue with his coalition partners as there was “no point agreeing on what’s already been agreed.“

“The whole forecast isn’t anyone’s pre-election pledge or anyone’s personal will or subjective opinion. That projection is the result of a coalition agreement,“ he asserted.