Public Pensions Policies In The Context Of Budgetary Deficits

Fiscal policy, social security expenditures and budgetary deficits represent the framework for future public policies for all the governments within the European Union. Also demographic changes determine governments to find the right solutions in order to provide the sustainability of social public expenditures. We consider that the main aims of future policies should be creating better job opportunities and working conditions for the growing number of older people in Europe. It is very important to help older people play an active role in society. The literature usually focuses on elements which underline the effects of macroeconomic parameters on the size of public pension expenditure. However, demographic effects are also important elemets which affect the sustainability of social security expenditures. The European governments seem to be extremely preocuppied by the sustainability of the pension and social insurance systems, especially in the context of the economic crisis and in the context of the aging process, and try to determine the best solutions both for the public pension systems and the privately managed pension systems. Within this paper we highlight the main challenges of future fiscal policies and explain the position of Romania by considering fiscal revenues, public expenditures and the fiscal constraints Romania is facing