Romania PM: Govt Can Either Pay Reduced Wages, Pensions Or Stop Paying Them As of Dec

Boc also said that talks with parties, unionists and employers' representatives will continue until next Wednesday when the Government is set to adopt Romania's letter of intent to the stand-by agreement with the International Monetary Fund.

Cartel Alfa union leader Bogdan Hossu on Thursday said unionists would take to the streets sooner than May 31, when an all-round public sector strike is planned, if the Government seeks a confidence vote in Parliament to adopt the drafting spending cuts it has announced. He also said unionists will stage ample protests the day the opposition's no-confidence motion is discussed in Parliament.

Leaders of Romania's large union federations meet Thursday with Finance Minister Sebastian Vladescu to discuss spending cut measures included in the letter of intent with the IMF.

Hossu stressed that he expects talks to soften the austerity measures included in the letter with the IMF, whereas Dumitru Costin, head of the National Union Bloc, said he thinks the Government will proceed with its spending cut measures, which, he added, will peak with a full-blown strike on May 31.

Finance Minister Sebastian Vladescu said Thursday, before the meeting, that making changes in the letter with the IMF would be totally wrong.

Romania has pledged to drastically cut public spending to tighten the country's budget deficit at 6.8% of GDP, in order for the International Monetary Fund and other international institutions to release a new installment of a EUR20 billion rescue loan agreed last year. The austerity plan entails public sector wage cuts by one quarter and pension and social welfare cuts of 15%.

Tens of thousands of people rallied Wednesday outside the government building calling on Cabinet members to resign over the planned cuts and threatened to go on full-blown strike as of May 31.

Romania's highly-unionized public sector employs about 1.4 million people, about one third of all the country's employees.

Unions have proposed alternative measures to the Government's planned cuts in a move to keep pensions unchanged and proposed a milder cut, of 10%, for wages. Unions also called for the higher taxation of copyright and authorized individuals.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.