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January 21, 2022
BUSINESS

Six-week target interval for implementing IMF-agreed measures

Romanian government has six weeks at most to implement measures agreed with the International Monetary Fund (IMF), among which 25 per cent state employee salary cuts and a 15 per cent cut in pensions, Romania’s representative at the IMF, Mihai Tanasescu, said during an interview with the ‘Pro Tv News’. “These measures agreed upon need to be put into practice by amending laws, their passage by government and Parliament and their being put into effect. I hope these measures can be implemented,” Tanasescu said. In his view, if the executive proves able to cut spending, there are only two solutions left, namely for government to raise taxes – VAT, and the flat tax – or some mixed bag, namely to raise taxes, yet to a lesser extent, along with spending cuts. President Traian Basescu last week said government assuming responsibility before Parliament is most likely the solution for the IMF-agreed measures to pass, given the short time remaining until the IMF board meeting late June. The head of state outlined the ‘urgent’ need for the IMF June batch being cashed. “Unless the law is promulgated, the board is sure not to take the late June instalment into discussion,” Basescu said.

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