Romanian Unionists To Lobby Against Adoption Of IMF Letter In Parliament

According to Hossu, Government representatives are not willing to modify the letter of intent to the loan agreement with the International Monetary Fund and rejected the unionists' proposals. The union leader said Prime Minister Emil Boc stated the Executive will not give up austerity measures, even if the decision triggers a Cabinet reshuffling.

Hossu said union officials will meet again with the Government on May 26, before the adoption of the IMF letter.

Boc said Thursday at the end of talks with unionists 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 letter of intent with the International Monetary Fund. 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 fiscality - unionists supposedly requested higher taxes, while the Government is in favor of keeping taxes at current levels, but reducing budget spending.

According to Boc, Romania would be heading for economic disaster if it did not take drastic spending cut measures.

Leaders of Romania's large union federations met Thursday with Finance Minister Sebastian Vladescu to discuss spending cut measures included in Romania's letter of intent with the Fund.

Boc said Wednesday during a Cabinet meeting 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%.

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