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| CONSULTATIONS AT COTROCENI 21/04/2010 |
| (2010-04-21) |
| Last updated: 2010-04-22 13:02 EET |
Romanian president Traian Basescu has held his first talks with the cabinet since taking over office in January. The media and the opposition rushed to term the meeting a “briefing” required by the president, who is seen by some as the executive’s de facto head.
The talks themselves were far from special. Basescu warned that economic data showed that the budget deficit risked jumping to 7% of the GDP in 2010 and that the 5% reduction of public sector pay expenses, agreed with the IMF, was not sufficient. Before the talks, National Banks officials and officials close to the government had put forward the idea that between 75,000 and 100,000 public sector employees should be fired, in order to balance the budget. Officially, no figure relating to layoffs was mentioned at the president-cabinet meeting.
President Basescu, however, called for all tax exemptions to be eliminated, for tax evasion to be more efficiently combated and for social assistance to be channelled to those who genuinely require it. He also urged for debt payments to be carried out by companies which have contracts with the state and better absorption of European funds. Prime minister Boc said that over the last year and a half, state employees expenses were slashed by 16% and that he aimed at pursuing a reduction of public salary expenses from 9.4% to 7% of the GDP. Boc stated that if the cabinets that he had led since December 2008 had remained inactive, the budget deficit would have reached 17% of the GDP this year. The talks then approached two sensitive issues that top the public agenda. The first regards the draft pension law.
According to the government, this aims at eliminating inequities, given that the system has been affected by chronic financial deficit. The law’s most controversial part concerns the military’s special pensions, which the law takes away. However, Defense minister Gabriel Oprea is backing these pensions and so is the president – or at least so it seems. Contested by the opposition, the bill reached Parliament. Another topic discussed was the situation of the National Integrity Agency.
The Constitutional Court has abrogated the Agency’s most important attributions, which entitled the latter to notify the Prosecutors’ Office regarding imbalances between politicians’ fortunes and incomes. The Agency was also able to call on the Court to confiscate illicit fortunes. Worried by the outcome that the Court decision could have on the judiciary report drawn by the European Commission, president Basescu has urged for the law regarding the functioning of the National Integrity Agency to be rapidly amended.
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