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| THE BUDGET UNDER SALARY RISE PRESSURE 16/10/2008 |
| (2008-10-16) |
| Last updated: 2008-10-17 15:39 EET |
The law on the 50% pay rise for Romanian teachers is constitutional, the Constitutional Court in Bucharest ruled on Wednesday. The court rejected the contestation filed by the government which claims that the law adopted by Parliament did not mention the funding sources. PM Calin Popescu Tariceanu is convinced that this increase would plunge the Romanian economy into a crisis, would affect all social categories and would destroy the economic performance reported by Romania over the past 9 years. He says that it would be in the interest of state employees not to ask for salary rises:
“I think that it’s in Romania’s best interest on medium and long term that such decisions should not be put into practice, because they are not in line with the general interest; they will create a state of well being for a month or two but then everybody will suffer the consequences of a skyrocketing inflation and of an economic crisis; and I do not want that to happen in Romania”.
Teachers are very critical of the PM’s attitude. The leader of the trade union federation, Marius Nistor:
“It’s obvious that we have a problem with a government that cannot understand that it has to observe the law, a government made up of people who are desperately clinging to their seats. We are warning them that the three teachers’ union federations will act according to the decisions made by the PM”.
Teachers’ unions took to the streets on Wednesday to ask for their rights. For them, the verdict of the Constitutional Court was tantamount to a victory. A delayed victory actually, at least until President Traian Basescu promulgates the law. In comparison with the developed countries in the EU, Romanian intellectuals are underpaid. In early 2008 the average salary of a teacher was almost 400 euros, 100 euros less than the average sum earned by all state employees.
PM Calin Popescu Tariceanu argues that increases in teachers’ salaries will be inevitably followed by a wave of salary claims in the state sector. Public servants have already made similar salary claims. Analysts agree with the PM that the budget will be affected. This phenomenon is the same all over the world. But what’s different is that, after 18 years of market economy, Romanians’ salaries are still the smallest in the EU space. And this will only justify the unions’ pressure on the government, which should take a balanced measure though.
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