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December 8, 2022

PM Orban: Our intention is not to implement austerity policies

The Government’s intention is not to implement austerity policies, PM Orban said on Friday, after participating in the meeting of the Technical-Scientific Support Group on the management of highly contagious diseases in Romania.

“Keeping demand as high as possible is a guarantee of an economic recovery as swiftly as possible. As long as a person has income, as long as he/she maintains his/her desire to buy, as long as he/she returns to a somewhat normal consumption – then it will be a positive signal for the economy and it will allow the resumption of many production activities, services related to meeting the needs,” said Orban.

Asked about the furlough for the budget system personnel, the prime minister specified that this measure is no longer applicable. In this context, he explained that many families are made up of people employed both in public institutions and in the private sector has been taken into account.

“Had we touched both of the family’s incomes, there would have been a higher risk,” added the prime minister, according to Agerpres.


Project of putting public employees on furlough,  difficult to enforce


The project of putting public employees on furlough was difficult to enforce, especially in certain areas where the fight against COVID-19 would have been affected, and this project “has fallen completely”, Prime Minister Ludovic Orban told private broadcaster B1 TV on Thursday evening.

“It was very difficult to enforce, the considerations were more epidemiological in nature, obviously and considerations of solidarity. On the other hand, we’ve entered the extension of the state of emergency. We don’t have the context until regulation is adopted. (…) It’s not a period of application. In addition, we also have difficulties related to the fact that there are many public institutions, many domains of activity that work with their engines revved and where such a measure of half-staff can not be applied, such as Health care, Internal Affairs, Education (…), even employees of the Public Finance Ministry who have extremely laborious activity during that period. Also, employees with the Ministry of Labour. (…) It was very difficult to enforce such a measure, because there remained quite small areas of the administration where it could have applied without affecting the mobilization of the administration in the fight against COVID-19,” the premier explained.

Orban added that there are some spending cuts from the budget.

“For example, those who are in teleworking lose their benefits. (…) There were also decisions of some authorities aimed, where possible, at reducing the activity. I mean, some measures that were taken, practically, we had no time to apply such a measure (furlough, ed. n.) ,” Ludovic Orban said.

The premier stressed that he had discussed a policy “as severe as possible” regarding the unnecessary expenditure at the level of state-owned companies, considering that restructuring at their level will be a market-dictated necessity.

“Restructuring will also be conducted out of necessity, because many companies will no longer be able to maintain a crowded establishment plan, especially in the central apparatus or in the regional apparatus,” said Ludovic Orban.

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