Romanian Union Leader: Banning Pay Raises 6 Mos Before Elections Is Absurd

Hossu stressed it is impossible to ban wage hikes six months before elections, as most enterprises and commercial companies have their budgets of revenues and expenses approved in March every year and negotiations start in November or December to operate pay raises as of January 1.

He also said not only local authorities should be compelled to draft financial plans for a three-year period, adding this measure should become a „general threat” for all state budget-consuming bodies, such as education institutions.

Romania’s caretaker Prime Minister Emil Boc recently said on Realitatea TV that salaries will no longer be increased six months before elections, local authorities will be obliged to draft financial plans for a three-year period and there will be a maximum two budget revisions per year.

According to Boc, contenders in presidential or local elections making election promises that involve budget resources will also be compelled to draft financial plans for a three-year period and say where they will get the money to keep their promises. Furthermore, they will have to consult with Finance Ministry and Fiscal Council officials who will make public their standpoint regarding politicians’ election promises.

Boc also said there will be only two budget revisions per year and the funds earmarked for investments will not be used to pay salaries and pensions.

All these provisions will be enforced on the basis of the fiscal liability law.

The Government recently said it will introduce a fiscal liability law to limit budget revisions and will set up a Fiscal Council meant to ensure an independent and expert evaluation on the budget and macroeconomic forecasts.

The Romanian authorities pledged in the negotiations with the IMF and the European Commission for a EUR20 billion aid package to adopt the fiscal liability law.