Romanian PM Meets Employers Friday For Talks On IMF Letter Of Intent

The sources said talks between the prime minister and employers' representatives will be held at the Labor Ministry's headquarters at 1 p.m..

Boc met Thursday with unionists and officials of the Finance and Labor Ministries for discussions on the cost-cutting measures proposed by the Government. The prime minister said that officials of Romanian Finance and Labor Ministries will continue talks with unionists until next Wednesday when the Government is set to approve Romania's IMF letter of intent.

He stressed, however, that unionists' proposals will only be accepted if grounded, adding that, at the moment, Government officials and unionists have different positions and views with respect to cutting expenditures in the public sector. One point in which they disagree concerns taxation - unionists supposedly requested higher taxes, while the Government is in favor of keeping taxes at current levels, but reducing budget spending.

Romanian Cartel Alfa union federation leader Bogdan Hossu said Thursday, after talks at the Finance Ministry, that there is no hope the cost-cutting measures included in the letter of intent with the IMF will be altered, adding unionists will lobby against the letter's adoption in Parliament.

Boc said Wednesday during a Cabinet meeting that the Government will seek a confidence vote in Parliament to adopt the drafting spending cuts it has announced.

The Government has pledged to drastically cut public spending to tighten the country's budget deficit at 6.8% of GDP, in order for the International Monetary Fund and other international institutions to release a new installment of a EUR20 billion rescue loan agreed last year.

Spending cut announcements have sparked waves of social unrest and mounting tension and tens of thousands of people staged the biggest rally of the past 19 years outside the government building Wednesday, trying to pressure authorities' into watering down their austerity plan that entails wage cuts of 25% and pension and social welfare cuts of 15%.

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.