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Romanian Econ Unable To Support Teacher’s Pay Hike – PM

Romania’s budget cannot sustain the 50% pay hike for teachers voted in parliament and the measure is likely to trigger a major economic crisis, Premier Calin Popescu Tariceanu said Friday.
Romanian Econ Unable To Support Teacher’s Pay Hike - PM
17 oct. 2008, 12:31, English

He said the Parliament should not commit to such an action without knowing the future structure of the government.
 
“It is not normal for the current government to commit to salary policies on behalf of a yet unknown future majority, and this is why I invited you to this debate (…),” Tariceanu told politicians at a meeting on Romania’s wage system. 
 
He said wage hikes would certainly trigger an economic crisis and will widen inflation, particularly given the international financial crisis.
 
Tariceanu said EU is worried that the crisis would progress to a severe global economic crisis, similar to the one between 1929 and 1933.
 
He mentioned Romania’s economy already sustained two significant wage hikes in the public sector, on April 1 and October 1, and that the salary increase included teachers’ pay as well.
 
Tariceanu met with officials of political parties Friday to discuss wages in the public sector, after the Constitutional Court ruled the 50% pay hike for teachers was constitutional.
 
Tariceanu and politicians discussed the principles to be followed to amend salary system in the public sector.
 
Romania’s Constitutional Court decided Wednesday that the law by which employees in the education system will receive 50% higher salaries is constitutional.
 
At the beginning of October, the Romanian Parliament has adopted a 50% wage increase of the education system employees, in a move seen as electoral bait.
 
Following the announcement, other categories of state employees threatened strike actions if they did not receive the same increase.
 
The Government challenged the vote before the Constitutional Court.
 
On Wednesday, Tariceanu said he was surprised by the Court’s decision to support the lawmakers’ vote, as such an increase cannot be supported financially and will generate a major crisis.