The majority decided yesterday to give the cabinet green light for chopping public wages and pensions until year end. Still, the minimum wage and pension will stay unchanged. President slammed opposition and the media for opposing cuts, mocked Union leaders.
The cabinet was set to pass yesterday the expense cuts package before facing a confidence vote in Parliament next week.
The letter of intent to the IMF does not include salary cuts for state company employees, but the cuts will nonetheless by operated by re-evaluation of each and every unit’s budget, PM informed ahead of the cabinet sitting.
Unions announced the general strike, on indefinite term will kick off on May 31 affecting main public sectors – education, healthcare and public administration, transport, economic and services sectors
On Tuesday night, President slammed the opposition and media that blame government’s incompetence as a reason for the current economic situation, saying the crisis is a reality of the whole Europe, not just Romania. He also mocked Union leaders who accuse politicians of being corrupt.
President on supporting 500 RON minimal pension in 2009: I must have been under the influence
Basescu told coalition MPs that Bucharest rejected the IMF proposal to raise taxes, “because it had the inconvenience of preserving the cancer in Romania’s state budget.”
National Bank Governor Mugur Isarescu told an Economic Forum that the relatively high level of contributions combined with legislation hampers economic activity and harbours tax evasion, which makes social welfare programmes difficult to fund.
According to the governor, the untaxed economy in this country currently amounts to roughly 20-25 per cent of GDP.