Romanian Unions, Employers Ask Govt To Change IMF Deal And Consider Their Proposals

Romania's Economic and Social Council, a body consisting of union and employers' representatives and government officials, on Monday failed to approve Romania's most recent letter of intent under the agreement with the IMF. The 15 government officials were the only to vote in favor of the measures included in the letter of intent, the 15 unionists voted against and employers' representatives voted in favor of the letter but also called for changes.

Thus, the Council on Monday failed to either approve or disapprove of the letter of intent of the Romanian authorities under the agreement with the IMF and will meet again next Monday..

Romania's Cartel Alfa union confederation head, Bogdan Hossu, on Monday said unionists will stage a full-blown strike and call for Government's resignation if the Executive adopts the current version of the letter of intent with the IMF.

According to Hossu, unionists are well aware that the country faces a critical situation, but they totally disagree that only some people should pay the price for the crisis.

Recession-hit Romania is relying on a financial aid package of nearly EUR20 million from the International Monetary Fund, the European Union and the World Bank and has pledged to drastically slash public spending. Romania has pledged to cut public sector wages by 25% and pensions and social benefits by 15% and has also promised to fire 70,000 state employees this year, to tighten its ballooning budget deficit and meet the requirements of the loan.

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