Romania’s Govt To Disclose Alternative Austerity Plan After Talks With IMF, WB – Interior Min

Asked what the Government alternative austerity plan consists of, the minister said details will be disclosed after Romanian authorities hold discussions with the two financial institutions. Blaga also said the Government will meet Friday evening for discussions.

Romania’s Constitutional Court ruled Friday that some of the austerity measures for which the Government received a confidence vote in Parliament are unconstitutional.

People close to the matter said the Court ruled that the provisions concerning magistrates’ pensions are unconstitutional, while those regarding other categories are open to interpretation, but do not require clarification in Parliament.

As per the Constitution, the provisions ruled unconstitutional must be made to conform with the Court’s decision within 45 days.

Recession-hit Romania, which is relying on a EUR20 billion international rescue loan led by the International Monetary Fund, has pledged to drastically cut public spending and the Government has adopted laws cutting public sector wages by 25% and pensions by 15%.