Romanian President: Govt Took Rough, Yet Necessary Measures To Cut Public Spending

Basescu also said Tuesday in the opening of a meeting with Prime Minister Emil Boc and his Cabinet that he wants to know the government's stand as regards cutting down public spending in the local and central administration and reducing costs with social benefits. Here, he cared to stress that the high number of people benefiting from social aid and a high percentage of unjustified social grants makes it hard to direct social benefits towards people who need social aid much more.

The head of state also said he wants to know the government's stand as regards increasing the absorption rate of European Union funds, adding he particularly refers to cohesion programs and the agricultural sector.

Basescu also said he wants to know ministers' stand as regards amending the country's Constitution and the decentralization process.

In turn, Prime Minister Emil Boc said staff spending decreased 16% between December 2008 and February 2010 and stressed the budget gap would have widened to 12% in 2009 and to 17% in 2010 if the government had carried on the policies of the country' former liberal government.

Boc pointed out that the government plans to keep cutting down staff expenses to gradually lower their weight in the gross domestic product down to 8.7% in 2010, from 9.4%.

Boc also said the Executive is focused on the absorption of EU funds, adding this process also depends on authorities' administrative ability to attract EU funds.

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