APRIL 3 2014 (The Conway Bulletin) — Armenia’s Constitutional Court ruled that the government’s flagship pension reforms were illegal, triggering a fresh crisis at the top of the Armenian political spectrum.
The ruling was a major blow to the government which has stubbornly stuck to its pension reform agenda despite increasing levels of public discontent. It also appeared to come as a surprise.
The following day Tigran Sargsyan resign as Armenia’s PM, although he did not link his resignation explicitly with the Court’s ruling. There have been perpetual rumours about his health and other job offers.
Later this month, the government also faces a vote of no confidence in parliament. Opinion polls have shown that its popularity has sunk to fresh lows.
And most of this unpopularity stems from the pension reforms.
Thousands have marched against changes which were introduced at the start of the year. The reforms stated that everybody born after Jan. 1 1974 would have to pay 5% of their salary into a state pension fund. The state has promised to match private contributions to the pension fund up to a maximum of $61 per month.
But now the Constitutional Court has ruled that the pension reforms introduced by the government restrict the rights of its citizens.
The problem for Armenia is, similarly to other countries in the former Soviet Union, it simply has to reform its state pension system to pay for its aging population and to compensate for the large grey economy.
ENDS
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(News report from Issue No. 179, published on April 9 2014)