Seitan said that without the Government’s cost-cutting measures, salaries could have been slashed by as much as 70% in 2011. He also said that, should the measures fail, the Cabinet would have no choice but to resign.
Romania’s Government adopted Sunday evening the two draft laws which make up its austerity plan, involving cutbacks of public sector wages, pensions and social welfare benefits. The Government will seek a confidence vote in Parliament for the two laws.
Prime Minister Emil Boc said the salary and pension reduction is a temporary measure, which will be in effect until the end of 2010; after that, they could be increased, provided public institutions undergo restructuring and the country’s new pension law is applied.