Romanian Opposition Urges President To Hold Referendum On Govt’s Austerity Plan

The Government will seek to pass its austerity measures into legislation Monday afternoon, within a procedure that bypasses Parliament debates and approval.

Social democrats, who said they will submit a no-confidence motion in Parliament to overthrow the Cabinet over its austerity plan, said the law adoption procedure the Government has chosen is undemocratic and reminiscent of a dictatorship.

Social democrat leader Victor Ponta said the party calls on the head of state to question Romanians on the appropriateness of austerity measures, considering 15 million people, out of the country's population of about 22 million, will be affected.

Romania's Government has recently adopted two draft laws for which it plans to seek a confidence vote in Parliament Monday. The austerity plan, which cuts public sector wages, pensions and social welfare benefits, should help the recession-hit country bring its economy on track and convince the International Monetary Fund, which is leading a EUR20 billion rescue package agreed last year, to disburse further installments of the loan.

Romania's economy is still not showing signs of recovery and, according to national statistics institute, the country's first quarter gross domestic product shrank 2.6% compared with the year-earlier period. Romanian economy declined by a sharp 7.1% in 2009, reversing a 7.1% growth in the previous year.

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