Romania’s Govt Rejects All Amendments To Draft Laws On Austerity Measures

People close to the matter told MEDIAFAX earlier Saturday that Prime Minister Emil Boc and the members of his Cabinet met in an attempt to find alternative spending cut solutions, so that pensions below 1,000 lei (EUR1=RON4.2051) should not be reduced by 15%. According to the sources, one of the proposed alternative solutions was to offer pensioners compensatory payment in 2011, if the country resumes economic growth, or slash pensions by 12%.

The sources said the Government failed to make a decision and talks on the issue would continue on Monday, the day the Executive seeks a vote of confidence for its austerity plan.

Boc and other Government officials will also meet Sunday evening with democrat liberal lawmakers to talk on austerity measures. Romanian President Traian Basescu is also expected to attend the meeting.

The Government has pledged to bring the budget deficit to 6.8% of GDP under the terms of a EUR20 billion IMF-led rescue loan agreed last year and will seek a confidence vote in Parliament for its austerity plan that cuts wages, pensions and social welfare benefits. Opposition parties threatened to submit no-confidence motions against the Government if it seeks a vote of confidence for the announced measures which triggered protests countrywide.

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