Romania’s Govt Wants To Adopt IMF Letter Of Intent Next Week

The sources said the Government will not give up the planned reductions of salaries and pensions, adding reductions of certain social benefits might be adjusted and minimum social pensions might not be affected by the cost cutting measures decided by the Executive.

Romanian Prime Minister Emil Boc said Wednesday during the Cabinet meeting that the Government will seek a confidence vote in Parliament for the speedy adoption of the country’s planned spending cuts.

The Government has pledged to drastically cut public spending to tighten the country’s budget deficit at 6.8% of GDP, in order for the International Monetary Fund and other international institutions to release a new installment of a EUR20 billion rescue loan agreed last year.

Spending cut announcements have sparked waves of social unrest and mounting tension and tens of thousands of people staged the biggest rally of the past 19 years outside the Government headquarters Wednesday, trying to pressure authorities into watering down their austerity plan that entails wage cuts of 25% and pension and social welfare cuts of 15%.

Unionists have threatened a full-blown general strike as of May 31, when teachers and public administration have already scheduled strikes.