Romanian PM Says Freezing Wages May Only Be Decided After Consultations With Unions

Romanian President Traian Basescu said Tuesday on public radio that he won’t react negatively if the government reaches an agreement with unions and freezes salaries and pensions for six months to use public money to salvage the economy.

Romanian social democrat leader Mircea Geoana said the social democrats won’t agree to a proposal to freeze wages,

"As far as the budget allows it, wages and pensions must be increased. Hiking low wages and pensions is one of the measures in the government’s anti-crisis plan and stimulates consumption,” Geoana said.

Government sources told MEDIAFAX later that the proposition was discussed as a working variant within the ruling coalition.

Sources within the coalition told MEDIAFAX Wednesday that democrat liberal and social democrat leaders agreed Tuesday night that they can’t consider freezing wages and pension this year, and the government plans to increase the wages of people with low incomes.