Over 50,000 Firms In Romania To Go Bankrupt If Minimum Wages Hiked – SMEs Council Head

Nicolescu said at the end of talks at the Labor Ministry that, taking into account the country’s current situation, raising minimum wages will also lead to a GDP decrease.

Nicolescu highlighted that wage raises must be correlated with labor productivity, and added the labor productivity has registered no increase.

According to democrat liberal sources cited by newspaper Gandul, Prime Minister Emil Boc will hold negotiations with International Monetary Fund representatives this week to increase the minimum wage to about 700 lei (EUR1=RON4.2940) from RON600 and reduce the flat tax rate to 12% from 16%.