„We are not discussing layoffs now; we are discussing the reorganization of the public sector, which has to be done by next year,” Vladescu said.
President Traian Basescu Thursday said the government’s program to reduce spending and boost revenue entails a 25% cut in public salaries, 15% lower pensions and limited subsidies, particularly in agriculture.
In addition, over 140,000 people are likely to lose their jobs following the austere measures, people familiar with the matter told MEDIAFAX.
Vladescu said Romania had enough money to pay public wages and pensions at their current levels, but the expenditure-slashing measures taken in the first months of 2010 were insufficient.
„Meanwhile, the required adjustments were less solid (than initially expected) and the number of pensioners and the average pension have increased, so we now have further expenses which can’t be compensated from the state budget any longer,” he said.