Romanian PM: No More Pay Raises 6 Months Before Elections

„Pay raises will be banned six months before elections, either parliamentary or presidential,” said Boc, adding mayors will be obliged to draft financial plans for a three-year period and get the approval of the Finance Ministry and a Fiscal Council.

According to Boc, contenders in presidential or local elections making election promises that involve budget resources will also be compelled to draft financial plans for a three-year period and say where they will get the money to keep their promises. Furthermore, they will have to consult with Finance Ministry and Fiscal Council officials who will make public their standpoint regarding the election promises made by politicians.

Boc also said there will be only two budget revisions per year and the funds earmarked for investments will not be used to pay salaries and pensions.

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All these provisions will be enforced on the basis of the fiscal liability law.

Romania’s Government concluded consultations with the International Monetary Fund and the European Commission regarding the fiscal liability law, which was finalized and sent to Parliament as a legislative initiative by the ministers who are also lawmakers. The law will be up for debate, with urgency.

The Government recently said it will introduce a fiscal liability law to limit budget revisions and will set up a Fiscal Council meant to ensure an independent and expert evaluation on the budget and macroeconomic forecasts.

The Romanian authorities pledged in the negotiations with the IMF and the European Commission for a EUR20 billion aid package to adopt the fiscal liability law.