Romanian President Would Agree To Govt Freezing Wages, Pensions For Six Months

"I won’t react negatively if the government reaches an agreement with unions to freeze salaries and pensions for six months, to see what happens (with the economy – e.n.),” Basescu said.

He added that, in his opinion, the priorities are directing resources into works that create jobs, the payment of debts the government has to economic operators and the reduction of bureaucracy, which is “suffocating and inefficient ".

Basescu said a trap regarding the drafting of the 2009 state budget is the government’s attempt to keep the promises it made during the election campaign now, although the commitments were undertaken for the next four years.

He added he would understand if the government wants to prove it is keeping its promises to raise wages and pensions, but with a six-month moratorium, to see how the country’s economy reacts.

Basescu said that if wages and pensions are frozen for six months and the number of public servants is reduced, the government would have money “for everything". He added that the effects of such a measure would only be felt after two or three months.