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A 50% Hike In Romanian Teachers’ Salaries Would Impact Budget Def, Inflation – EC

European Commission stated Wednesday that the implementation of the law on increasing teachers’ salaries by 50% would significantly impact Romania’s budget deficit, inflation and the entire economy, as it may trigger similar requests from other public sectors.
A 50% Hike In Romanian Teachers' Salaries Would Impact Budget Def, Inflation - EC
28 ian. 2009, 20:15, English

In a press release on EC recommendations for Romania adopted Wednesday, under Lisbon Strategy, salary increases also represent an issue related to Romania’s macro-economic policies.
 
EC recommends the significant tightening of the fiscal policy and the implementation of a binding medium-term fiscal framework for preserving external competitiveness and for the control of the current account deficit and inflation.
 
Romania should also revise the composition of expenditure, to increase the share of growth-enhancing spending among others by reducing and redirecting state aid to horizontal objectives and keeping wage developments in line with productivity growth.