Romanian Ctrl Bk Official: Wage Hikes To Slow Over Next Yrs

"It is hard to believe that the Romanian productivity will register 20% hikes gradually. The competition in the political field has led to unreasonable salary increases, which boosts inflationary pressures," Croitoru said.

Romanian net wages accelerated by 25.8% on the year in July to 1,308 lei, compared with RON1,040 in the same period a year earlier.

Croitoru admitted there might be further salary increases in the budget sector in 2009, given the presidential elections, but said these would be lower than in 2008.

"In the private sector there is a higher flexibility of the personnel, while in the budget sectors, people will not be fired from the Government if the economy is not working properly," Croitoru said.