Romanian President: A 10% Jobless Rate Will Trigger Major Social Problems

However, the head of state stressed we would not face such problems if we handle things properly, stressing Romania can afford an unemployment rate of 6% or 6.5%, but not a two-digit jobless rate.

Basescu pointed out that a two-digit unemployment rate would trigger a social crisis, adding that "we ought to do our best to avoid this sideslip".

Basescu called on company owners and investors Tuesday to think “ten times” before operating massive layoffs and suggested a partnership with the government to cushion the effects of the economic crisis.

“I wish to appeal to you, company owners, investors, people who hire the workforce: think ten times before moving to massive layoffs. Budget resources are limited and, even if my request isn’t normal for a dynamic market economy, I urge you to consider the possibility of partnering up with the government in the attempt to lower social effects to a minimum,” Basescu told a conference of foreign investors in Bucharest.