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| ECONOMIC STRATEGIES AT TIMES OF CRISIS 27/01/2009 |
| (2009-01-27) |
| Last updated: 2009-01-28 16:04 EET |
The Romanian President on Tuesday said on the public radio that he supported the freeze of salaries and pensions for 6 months.
On Monday, President Basescu said on the public TV that the honeymoon of the new Romanian coalition government was over and warned that the period of grace he grants to the cabinet would end too when the 2009 budget was made public. Traian Basescu also made some suggestions, pointing out that the budget must meet the current demands, allocating the highest funds for investments, while providing social protection for those affected by the economic crisis.
The government seems to have complied with the recommendations. Prime Minister Emil Boc has made it clear that the draft budget focuses on economic development, investments and the protection of people in the low income bracket or with low pensions. The draft budget largely overlaps the anti-crisis plan. According to Bogdan Hossu, the leader of one of the big trade confederations, some 20 measures in that package will be budget-funded and the government is to allocate nearly 10 billion Euros to implement anti-crisis measures as far as investments are concerned.
“The draft budget is not nailed down and the anti-crisis plan has been slashed so as to include only 20 measures”- GANDUL says. The paper writes that until the budget has been passed, the bill being expected to be made public on Thursday, the leaders of the coalition made up of the Social Democratic Party, the PSD and the Liberal Democratic Party, the PDL, are discussing the priorities: motorways, schools, hospitals. On the other hand, governmental sources are quoted by GANDUL as saying that the government wants to divide the awaited 50% increase in the salaries of the teaching staff into two tranches.
However, the relevant ministry does not confirm the information. The paper ADEVARUL compares the figures and remarks that Emil Boc envisages fewer funds to contain the crisis than former liberal prime minister Calin Popescu Tariceanu had planned. That is explained by the fact that the forecasts on which Prime Minister Emil Boc relies on are more pessimistic than the ones on which his predecessor did. “The top priority is the completion of motorways”-ZIUA says. The paper also writes about the 2000 employees in the public administration that are expected to be made redundant.
COTIDIANUL has found out why it is so difficult for the 2009 budget to take shape, quote: “The PSD accuses the PDL of having stolen from its money and positions. The PDL has increased the budgets of its ministries, while the PSD receives no money for education, health-care and pensions”, the paper reports. The disputes between the two parties in the coalition government seem serious. According to COTIDIANUL, the Social Democrats have threatened to summon the party’s Executive Committee in order to consider the possibility of leaving the coalition cabinet unless its ministers receive the funds they had requested for their budgets.
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