insurance contributions, the required economy could be achieved only by reducing the
amount of the established social security disbursements.
3.6. The impugned provisions that prescribe a small and fixed-term reduction of
state pension amount should be viewed in the context that, during the improvement of
economic situation and increase of available resources, the amount of state pensions
has been substantially increased over the years.
The Saeima especially drew the attention of the Constitutional Court to the fact
that the restriction prescribed by the impugned provisions is a temporary measure and
Article 9 of the Disbursement Law contains a constant and publicly controllable
monitoring mechanism for this law.
Taking into account the above, the Saeima pleaded the Constitutional Court to
declare Paragraph One of Article 2 of the Disbursement Law as conformable with
Articles 1 and 109 of the Constitution as well as to declare Paragraph One of Article 3
of the Disbursement Law as conformable with Articles 1, 91 105 and 109 of the
Constitution.
4. The arguments of the summoned party – the Cabinet of Ministers – that
substantiate the conformity of the impugned provisions with the Constitution, were
similar to the arguments of the Saeima.
When answering the questions of the Constitutional Court, the Cabinet of
Ministers pointed out that the reference to a possible contradiction with the
Constitution in the annotation of the Disbursement Law should be understood as
drawing attention to a possible risk that should be particularly assessed during each
stage of discussion of the draft law. The above reference in the annotation is
informative, and as such is not founded on facts, for it contains neither any specific
facts nor arguments that would give evidence concerning breach of the respective
articles of the Constitution.
During the negotiations, the international creditors repeatedly took notice of the
possibility that the sustainability of the social budget would be endangered even in the
case of freezing the indexation of pensions. Nevertheless, the social area has been
spared as much as possible and such reductions of old age pensions as prescribed by
the impugned provisions were not included in any of the initial loan agreements. They
were included only in the latest stages: with the European Community – in the
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