Romanian Govt To Seek Confidence Vote In Parliament For Drastic Spending Cuts

President Traian Basescu said Thursday the government would likely seek to adopt its planned measures seeking a confidence vote, in order for the International Monetary Fund to discuss the disbursement of a new loan installment to the country at its board meeting in June.

Opposition leaders said they would submit a no-confidence motion if the Cabinet dares seek a confidence vote to adopt wage and pension cuts.

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%.

Unionists have threatened a full-blown general strike as of May 31, when teachers and public administration have already scheduled strikes.