Romania To Repeal Laws Regulating Newborn’s Trousseaus, Financial Aid For Newlyweds

Romania's anti-crisis plan includes a series of measures to reduce social spending and the Government will also do away with Law no. 482/2006 which regulates the provision of trousseaus for newborns and Law no. 396/2006 granting financial aid to newlyweds.

According to the draft act, the Government will also repeal an ordinance amending Law no. 482/2006, whereby the equivalent value of a newborn's trousseau, which includes clothes and care products worth RON150, will be granted free of charge for babies born between January 2007 and December 2010.

Romanian President Traian Basescu said Sunday, after talks with union federation leaders, that social benefits for children and people with disabilities will not be reduced, adding all other subsidies are further poised to "analysis, reduction or elimination."

Romania and the International Monetary Fund have agreed on a budget deficit of 6.8% of GDP in 2010, from an initial target of 5.9% of GDP, and the country must implement a series of cost cutting measures, such as reducing subsidies and slashing the public sector salary fund by 25% and pensions by 15%.

The IMF will only disburse the fifth tranche of the EUR13 billion stand-by agreement after the government implements these measures.

Joint teams from the IMF, EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania's progress under a loan agreement. Romania's loan agreement with the IMF is part of a larger EUR20 billion package that includes funds from the European Commission, the World Bank and other foreign lenders.

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.