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March 23, 2023

Vladescu: We should be cautious with increasing salaries

The government must operate a salary increase in the public sector along with a reduction of Social Insurances Contribution (CAS), former Finance Minister Sebastian Vladescu said on Radio France International (RFI). He believes that a mix of both measures is more efficient. The wage increase should be made in two steps: June 2012 and January 2013. “If you ask me, we should be cautious with increasing salaries, at least on June 1. This probably should not reach 16 pc, but only 5-7 pc, and the difference somewhere after January 1, 2013; cutting the CAS by 3-4-5 percent points would be one of the few measures that would support the job creation process. If both measures are taken, the only solution – except one that should not be considered, which is cutting the expenses for investments, because I do not refer here to the correct use of money for investment, so really efficient expenses and with a multiplication effect, I mean – the only possibility is adding 0.5-0.7-0.8 percent points to the deficit,” Vladescu added. He estimates that the crisis will last 3-5 more years in Europe, according to the source, quoted by money.ro. He added that Greece will not leave the euro zone and Spain will go through a difficult period of crisis, but will not experience the problems of Greece.

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