PM: Romanian Govt May Look Into Slightly Raising Public Wages, Pensions If Economy Allows It

Speaking before a Government meeting, Boc said the Executive decided at the end of last year that pensions and public wages will be raised in 2012 if the state of the real economy allows it.

Leaders of the country's ruling coalition decided Monday the prime minister will negotiate a potential raise in public wages and pensions with the International Monetary Fund.

Sorin Frunzverde, spokesman for the ruling Democratic Liberal Party, said the coalition gave Boc green light to negotiate a raise in wages and pensions come April.

Labor Minister Sulfina Barbu said Monday Romania could raise public wages and pensions by a maximum 5% in the second half of the year but only if the country posts an economic growth of at least 1.8%.

Romania's Government has imposed harsh austerity measures over the past two years, including public wage cuts, to keep the country afloat during the economic crisis.

Romanian president Traian Basescu warned Sunday that populist measures taken at this time could cancel the effect of austerity measures imposed in previous years. Romania will hold local and parliamentary elections this year.

A delegation of the International Monetary Fund is currently in Romania for the fourth review of a EUR3.5 billion precautionary agreement signed end-March 2011.

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