The new government of Romania, headed by the Social Democrat Victor Ponta, has firmly undertaken to carry on macroeconomic policies and reforms. Ponta presented the priorities of the government formed by the Social Liberal Union, a political alliance of the Social Democratic Party, the National Liberal Party and the Conservatives.
These priorities include ridding public administration of political influence, creating new jobs, complying with foreign commitments, protecting the country’s natural resources and having zero tolerance for corruption. The governing programme does not provide for any changes in taxes and charges. The new cabinet also targets a substantial increase in the absorption of European Union funds.
In terms of foreign policy, developing and strengthening Romania’s profile within NATO and the European Union is a priority, alongside promoting and supporting the European aspirations of the neighbouring Republic of Moldova. The new government promised to bring public sector salaries back to the level they had prior to the 2010 cuts, and to return the amounts illegally deducted from pension benefits. Victor Ponta:
“The key goals of the new cabinet with respect to salaries and pensions have been accepted by the International Monetary Fund. I believe that Romanians have seen too often pre-election promises being broken afterwards. If we, in the Social Liberal alliance, keep our promises from the very beginning, I can hardly think of a better start and a more correct attitude on our part.”
The question of raising public sector salaries has been discussed with the representatives of the International Monetary Fund, the European Commission and the World Bank, who are in Bucharest on an assessment mission. After a few days of intense negotiations, they agreed on an increase in public sector salaries by widening the budget deficit. President Traian Basescu said after the meeting with the officials of the three lending institutions that he supported public sector pay rises, which would bring additional revenues to pension and healthcare funds. Traian Basescu:
“I fully support the idea of bringing salaries back to the level before the cuts, and I have said this to the International Monetary Fund, the previous cabinet, the international officials during the January-February mission, the Parliament of Romania and the new government. I have told the prime minister about this option and obligation that we have towards public sector employees. This salary increase will not bring about a bigger structural deficit in the healthcare and pension funds.”
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