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Romania Must Maintain Austerity Measures In 2011 – President

Romanian President Traian Basescu said Wednesday evening on public television that austerity measures must also be applied in 2011 to bring the country back on track, and criticized some of the political measures taken between 2007 and 2008.
Romania Must Maintain Austerity Measures In 2011 - President
05 aug. 2010, 09:32, English

Basescu said that some of the measures implemented by the Government between 2007 and 2008 destroyed the budget’s financial stability, adding they were not corrected in 2009. He highlighted that the austerity measures taken this year are meant to stabilize the budget and stressed they should be continued in 2011.

The head of state said the planned 74,000 layoffs in the public sector, which will be made by the end of the year, are not enough. He stressed that Romania should contract loans only for investments and not to pay pensions and salaries, adding that, otherwise, it would become a „second-rate” country.

The Government pledged in its additional letter of intent with the IMF to lay off 74,000 state employees by the end of 2010 and at least 15,000 in 2011.

Romania and the IMF last year signed a EUR13 billion loan agreement, part of a larger EUR20 billion aid package that includes funds from the EU and other international lenders.

Joint teams from IMF and the EU arrived in Bucharest July 26 for the fifth review of Romania’s agreement. Following the mission, the IMF will decide whether to disburse another EUR914 million to Romania.