Romania’s Centrist Govt Survives Opposition’s No-Confidence Motion

The motion was filed by opposition social democrats and liberals to derail Prime Minister Emil Boc’s plan to cut public wages and increase taxes to meet budget-deficit targets set by the International Monetary Fund as a condition for a EUR20 billion bailout. The opposition said the Government’s measures delayed Romania’s recovery from recession.

Romania has implemented harsh cost-cutting measures this summer to meet the demands of the EUR20 billion loan agreed last year. The measures, which have sparked mounting social unrest, include a 25% cut in public salaries, a controversial pension reform, public sector layoffs and tax raises.