Two Romanian Employers’ Confederations Withdraw Support Of Letter Of Intent To IMF

Members of the entrepreneur union UGIR-1903 and of the Employers' Confederation in Industry, or CONPIROM, unanimously decided that their representatives to the Economic and Social Committee should abstain from sanctioning the letter of intent.

UGIR-1903 head Ioan Cezar Coraci told a press conference that his union does not support the letter of intent in its current form, adding that employers should not decide in the matter of pension and public sector wage cuts.

Coraci added that the entrepreneurs' confederation initially supported the memorandum, as it believed the Government would continue talks with labor unionists until the Economic and Social Committee convenes Tuesday. The union will withdraw its support, since there will be no further negotiations with the unions and the entrepreneurs "are afraid" of further social protests and strikes, said Coraci.

According to Coraci, Prime Minister Emil Boc only discussed measures of economic relaunch during Friday's meeting with employer representatives.

Both UGIR-1903 and CONPIROM will continue to support Romania's agreement with the International Monetary Fund and the European Commission, according to which Romania has pledged to reduce its budget deficit.

Representatives of the two confederations added that the Government must stimulate economic relaunch, in addition to cutting public sector expenditure. Ten days ago, employers released a set of measures aimed at re-launching Romania's economy, which included tax exemptions for new businesses during the recession, the adoption of the public private partnership, creating new jobs, rendering European funds more accessible and lowering tax evasion and smuggling.

UGIR-1903 and CONPIROM representatives announced Friday, after talks with Boc, that they would support the measures stipulated in the Government's letter of intent to the IMF, as the Prime Minister had promised to maintain tax deductions for the IT industry and the current contribution rate to mandatory private pension funds (Pillar II).

The two employers' confederations have one representative to the Economic and Social Committee each.

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