IMPROVING SOCIAL PROTECTION IN ROMANIA As compared to the EU-average of 27% of the GDP, Romania spends only around 15% of the GDP on social protection Only one-fifth of children living in low­income households in Romania avoid poverty as a result of social transfers, as compared to 40% in the EU on average The value of the social reference indicator used as a benchmark for social benefits has remained constant at 500 lei since its introduction in 2008. The increase of the social reference indicator to 1,200 lei would results in an estimated economic gain of 0.9% of the GDP Income-support benefits, fair progressive taxation and better access to health insurance are necessary to foster labour market transitions from precarious employment to wage labour Active labour market policies should replace excessive sanctions with stimulants for regional mobility Social assistance benefits, including the minimum social pension, should be regularly indexed in relation with the evolution of the minimum wage More information about this subject can be found here: 47