|
RRI newsletter subcription
(e-mail address):
|
 |
Archives:
|
|
| BUDGET DEFICIT AND RECENT SALARY CUTS IN ROMANIA 25/06/2009 |
| (2009-06-25) |
| Last updated: 2009-06-26 13:06 EET |
The Commission has called on Bucharest to amend the indicator, so that it could reach the deficit target for 2009, set at 5.1% of the GDP, and then gradually bring the deficit under the 3% EU ceiling, by 2011. Brussels has warned Romania that this year it might also face the risk of going under the deficit target, because of the harsh economic recession, but also because it did not cut down expenses. The Commission, as well as the International Monetary Fund believe that the Romanian economy’s prospects of dropping this year by only 4% are too optimistic. The European Commission also demanded that salary expenses in the public sector be cut down, a reform of the pension system, extending the retirement age, an improvement in tax collection procedures, as well as a broadening of the taxation base level.
Also, the Romanian government this year will have to adopt the single payment system law for personnel employed in the public sector, and reform the Fiscal Code. To finance the budget deficit and refinance its public debt, Romania will be granted a 5 billion Euro loan by the EU, according to a memorandum jointly signed Tuesday between the Bucharest authorities and the Executive in Brussels, of which an initial installment of 1.5 billion Euro will be granted in July.
The other installments will be granted along two years, under certain conditions. The European Commissioner for economic and budget affairs Joaquin Almunia has drawn attention over the fact that, should Bucharest fail to implement the agreed fiscal and economic reform measures, the European Commission will stop granting the loans altogether, and that might lead to even more serious economic difficulties for Romania.
The loan granted by the European Commission is part of a 20 billion Euro agreement in foreign financial assistance for Romania, coordinated and supported by the IMF, the EU, the World Bank and the European Bank for Reconstruction and Development; the loan will help Romania overcome the ongoing world economic crisis. We should not fail to mention, however, that excessive budget deficit procedures have been initiated for other EU member states as well: Poland, Malta, Lithuania, France, Germany, Spain, Ireland, Latvia. With details on the procedure, here is the Director of the European Institute in Romania, Gabriela Dragan.
" The procedure as it is means progressing along several stages, and I should like to point out that the Commission’s eventual aim was not to penalize the EU member states that failed to meet the set targets, but to encourage those states to meet them".
|
|
| |
WMA |
|
64kbps : |
1
2
3
|
|
|
128kbps : |
1
2
3
|
| |
MP3 |
|
|
64kbps : |
1
2
3
|
|
|
128kbps : |
1
2
3
|
| |
AAC+ |
|
|
48kbps : |
1
2
3
|
|
|
64kbps : |
1
2
3
|
 Historical mascot of
RRI |
2025-04-03
Print
Listen again