Romanian Pensioners Picket Presidential Palace, Call On President To Resign Over Austerity Plan

Other hundreds of pensioners are picketing prefects' offices across the country over plans to cut pensions and social benefits by 15%.

Recession-hit Romania, which is relying on a EUR20 billion IMF-led loan, has pledged to drastically cut public spending and reign in this year's budget deficit to 6.8% of GDP. Cuts include a 25% reduction of public sector salaries and 15% of pensions, unemployment and other social benefits, as well as massive subsidy cuts.

Unions have threatened Greek-style protests over the austerity plan.

The country's president, Traian Basescu, announced the drastic spending cuts last week and explained Romania would have otherwise had to raise its main taxes.

The International Monetary Fund said it recommended a series of "balanced" measures to lower Romania's growing budget deficit, but the authorities in Bucharest decided to rely almost entirely on public spending cuts.

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