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Romania’s Announced Wage Cuts Not Our Proposal, IMF Says

Romania’s austerity plan to cut public salaries and pensions by 25% and 15% respectively was developed by the authorities in Bucharest and was not proposed by the International Monetary Fund, the institution told MEDIAFAX Friday.
Romania’s Announced Wage Cuts Not Our Proposal, IMF Says
07 mai 2010, 14:31, English

An IMF team is currently in Bucharest for the fourth review of Romania’s EUR13 billion loan agreement signed in the spring of 2009.

The announced measures will be discussed with the Romanian government as part of the mission, IMF said.

Romanian President Traian Basescu Thursday said the government’s program to reduce spending and boost revenue entails a 25% cut in public salaries, 15% lower pensions and limited subsidies, particularly in agriculture.

In addition, unemployment benefits would decrease by 15%.