It’s been a full week for the experts of the joint IMF, EC and WB mission that came to Bucharest for a fresh assessment of the way in which the provisions of May’s precautionary agreement with Romania have been observed. During their mission, the experts met trade union and employers’ representatives, the opposition, ministry officers, the Prime Minister and the head of state. The talks focused, among other things, on the evolution of state revenues and expenditure, budget adjustment, the basic parameters of the 2010 budget, fiscal reform and the restructuring of the health-care system.

The head of the IMF delegation, Jeffrey Franks, voiced his contentment with the results of the evaluation so far. He has stated that Romania has met the targets set under the new agreement, regarding performance criteria in all fields. Franks admitted, though, that efforts must continue in the restructuring of the health care system and state owned companies. The IMF announced it will not accept any deviation from the 2012 budget targets regarding the diminishing of salaries in the public sector. The Romanian authorities have agreed with the Fund upon a budget deficit next year standing at 3% of the GDP and a 7.1% staff spending ceiling. President Traian Basescu has stated that Romania’s main objective is now to redirect government resources towards supporting and creating jobs. He has stressed the need for a public investment program, for an increase in the absorption of European funds and for the continuation of health reforms.

The government in Bucharest has taken new measures to restructure state companies and their debts

In line with the commitments made towards the IMF, the Romanian government decided on Wednesday to downsize state companies, firing 1300 employees in three energy companies in which the state is the major shareholder. They will get unemployment benefits and severance pay for up to two years, depending on how long they have been on the job. Most of the people made redundant will be from the National Coal Administration, which will have to make do without 900 of its employees.

The restructuring program includes closing three mines, and state aid for this procedure will be allocated by the Government from next month onwards. Unions in that sector claim that the mining problem cannot be solved simply by laying people off. They admit that mines have to be closed down, but they also believe that others could become viable if there was a clear program for investment. Similar measures will be applied to more state controlled companies. 5,500 people will have to be made redundant from the three state controlled railway companies, mostly from CFR Marfa, the cargo branch of national railways. The Ministry of the Interior also announced it would lay off 10,000 people, and the Romanian Postal Services will lose 2,000, along with the National Fiscal Administration Agency. The IMF claims that reducing state company debt, which amounts to 5% of the GDP, is a priority objective, both for them and for the authorities in Bucharest.

Recently, Spain reduced access for Romanians to its labor market.

On Thursday in Madrid, Romanian Labor Minister Sebastian Lazaroiu discussed with the authorities in that country the restrictions introduced to reduce access for Romanians to their labor market. The two governments agreed to set up a workgroup for supervising the application of restrictions in order to minimize abuse of the measures. According to the Spanish authorities, the restrictions are temporary, and were introduced once again in order to protect the domestic labor market. Unemployment in Spain now exceeds 20%.

The measure does not affect Romanians who already have jobs. Spanish trade unions criticized the government decision, believing that the measure will encourage the gray economy. The European commission is looking into Spain’s decision to reintroduce these restrictions for Romanians. Spain has over 860,000 Romanians living there, making up the largest foreign community in the country.

The friendly game between Romania and Argentina scheduled for August 10th was postponed at the request of Argentina.

Disappointing news for the Romanian Football Federation and for fans everywhere: the Argentine national football team announced it would not show up for the friendly game they had scheduled with the Romanian national team on August 10th. The reason behind the decision is the resignation of coach Sergio Batista. The game was scheduled to inaugurate the National Arena in Bucharest, which will host the finals of the Europa League in 2012. The Romanian federation will file for damages with the International Football Federation if Argentina does not reconsider its decision.

Continuing with news from football, this week saw the first stage of games from the third preliminary round of the Europa League. Gaz Metan Medias tied away 1 to 1 against FSV Mainz 05, while Dinamo Bucharest also tied, this time at home, 2 to 2, against NK Varadzin of Croatia. Romania is also represented in the Europa League by Steaua and Rapid, both from Bucharest. In the Champions League, Otelul Galati has qualified by default, while FC Vaslui is striving to qualify, after being defeated two-nil in an away game by Dutch vice-champion Twente Enschede in the first leg of the preliminary third round.