on most of the society, and, if these restrictions are not applicable to some social group, this group is in a privileged position. Considering that the paying capacity of the State has decreased, in the first place, support from the majority of society should be obtained for such an action as the improvement of the financial situation of one social group compared to the financial situation of other groups. On the one hand, if the Constitutional Court left the impugned provisions in force, a range of economic consequences could follow. First, achieving the reduction of expenditures in the social area, the State would fulfill the requirements of the international creditors and therefore would continue receiving international loans. Second, people would bear in mind that they cannot trust the promises of the State in the future. Third, the purchasing capacity of pensioners would decrease along with their living conditions; for a part of disadvantaged persons – noticeably. Fourth, a part of the employed pensioners would terminate their employment legal relationships, and it would not be easy to fill the vacancies after them simply because of the low wages for the respective jobs. On the other hand, if the Constitutional Court invalidated the impugned provisions, another range of economic consequences could follow. First, the State would be compelled to find the budget expenditure decrease alternatives in other areas. Otherwise the State would not be eligible for the next international loan installments and would be compelled to move to balanced budget. Second, the State’s potential fulfillment of its promises pertaining to the increase of pensions would be given much more careful consideration in the future. Third, people’s reliance upon the State would grow stronger; consequently, the State would have an impetus for developing a more well-considered and balanced long-term policy in the future. Fourth, not to increase pensions in the situation of deflation would be the same as to increase them, because the purchasing capacity of pensioners would increase as a result. Fifth, domestic consumption of the State would be stimulated if pensions were not reduced. Ģ. Rungainis proposed an all-embracing reform of the State administration system as an alternative to the adoption of the impugned provisions. Furthermore, the option to broaden the taxation system and to increase specific taxes was and still is open. However, one should take into account that, if the tax burden is increased in the 26