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Romanian PM Says Restoring Salaries, Pensions In 2011 Will Require Public Sector Restructuring

Romania’s Government stands by its decision to curb the budget deficit through expenditure cuts, while increasing salaries and pensions in 2011 will require restructuring in the public sector and economic recovery, Prime Minister Emil Boc said on Friday.
Romanian PM Says Restoring Salaries, Pensions In 2011 Will Require Public Sector Restructuring
21 mai 2010, 18:57, English

„We believe that the VAT and flat tax should not be hiked during crises, so we are opting instead to cut budget expenses, in order to reach a 6.8% deficit. The next six months are critical; economic recovery and an increase of salaries and pensions in 2011 hang on the success of these measures,” Boc said at the end of the Government’s talks with employers’ organizations.

The prime minister gave assurance that the measures will not affect the social benefits for children, people with disabilities, war veterans and victims of the Communist regime, and the minimum wage will be kept at its current level.

Boc said the Government would also reduce spending on its administrative apparatus, by sacking a number of state secretaries. He also criticized the previous liberal Cabinet (2004-2008), accusing former Prime Minister Tariceanu and former Finance Minister Varujan Vosganian of authorizing salary and pension increases which the economy could not really afford.

Boc met Friday with employers’ representatives for talks on Romania’s letter of intent with the International Monetary Fund, after a meeting Thursday with unionists for discussions on the cost-cutting measures proposed by the Government.