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| Public Sector Employees’ Wages, On the Rise |
| (2012-03-13) |
| Last updated: 2012-03-14 15:12 EET |
The Romanian ruling coalition has approved to make public sector employees’ wages “whole again”, as of June this year. The government is to make a final decision after the analysis of economic results in the first quarter has been made public. Wages are rumored to increase by 15%, which would be tantamount to the same level of 2010. The coalition reckons all conditions are met in order to lift the austerity measures that entailed the slash in wages as of June 2010. Against the backdrop of the financial crisis, wages in the public sector saw a 25% cut, while in January 2011 they were only partially restored. Chamber of Deputies president Roberta Anastase:
Roberta Anastase: “We are talking about making wages whole again, not an increase in wages. We are virtually talking about back payment to restore public sector wages. The entire coalition, first and foremost, the president and the Liberal-Democratic Party support this project, which is also included in our governing programme”.
Liberal-Democrat MP Gheorghe Ialomitianu also said that restoring wages was a debt the current government must pay, since now that it had fulfilled its commitments towards its foreign lenders, it must come up with a solution to restore wages. Former Finance Minister Gheorghe Ialomitianu:
Gheorghe Ialomitianu: “Solutions do exist – reducing tax evasion, which is included in the fiscal-budgetary strategy, a thorough analysis regarding public spending, and I refer here to goods and services. I am confident public revenue in 2012 will exceed the estimated budget forecast”.
The opposition has agreed to the move, although it has argued the measure should be accompanied by a slash in social security contributions. Conservative leader Daniel Constantin said brining wages to the level of 2010 would not restore the purchasing power to its original level. Daniel Constantin:
Daniel Constantin: “We disagree with the term “making wages whole again”, used by the Liberal-Democratic Party and the ruling coalition. It is inaccurate. We can speak of restoring wages only if their increase is based on an update of the inflation rate”.
Social-Democrat leader Victor Ponta said the increase should be doubled by further economic measures. The Social Liberal Union has called for an economic policy package aimed not only at paying back the debt owed to public sector employees, but also making more jobs available and ensuring the sustainable development of both the public and the private sector.
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