The sustainability of pension system is based on three principles: adequacy, financial sustainability and capability to adapt itself to changes (see European Commission, Objectives and working methods in the area of pensions: Applying the open method of coordination, Joint Report of the Social Protection Committee and the Economic Policy Committee, Luxembourg: Official Publications of the European Communities, 2001). Consequently, the sustainability of pension system is closely related to the overall economic situation in the State. The Constitutional Court agreed with the argument of the Saeima that, in the circumstances of major economic recession – to lessen, within limits, its adverse consequences – the legislator must act as swiftly, concertedly and decidedly as possible. Reasonable freedom of action must be granted to the legislator for taking such measures. However, the economic situation in the State, or the need to reduce the budget deficit, in the absence of other legitimate ends, cannot serve as an overarching justification for the State to restrict the rights previously granted to persons. The Disbursement Law has been adopted at the time of difficult economic situation. In this context, the rapid economic recession in the State has affected the social budget within a relatively short period of time. The social insurance special budget is a constituent part of the State budget; therefore, there are financial interconnections between these budgets. Changes in the expenditures or revenues of the social insurance special budget have an effect on the balance of the entire State budget. It is evident that the economic situation in the State has also affected the stability of the social insurance special budget, and the Saeima and the Cabinet of Ministers, in this situation, were obliged to take action in order to ensure the welfare of society in a long-term perspective. The Constitutional Court could not regard as justified the opinion of the Applicants – i.e. that the impugned provisions do not have a legitimate end, for the necessary economy is planned solely at the expense of persons with low income. The decrease of budget expenditures reached by means of the impugned provisions is approximately 17.4 % or one-sixth from the total decrease of the State consolidated budget. No doubt, such a decrease has also affected the other positions of the budget along with the branches of activity of the State and national economy. So, for example, the number of workplaces has been cut down and the amount of financing revised for the State 42