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| DEADLOCKED SOCIAL DIALOGUE 21/05/2010 |
| (2010-05-21) |
| Last updated: 2010-05-25 14:45 EET |
Prime minister, Emil Boc, continues to back the harsh measure regarding budget expenses by slashing pensions, public system salaries, subsidies and social benefits. Boc has emphasised that, if this measure is not applied, in a few months, the state will no longer be able to pay pensions and salaries. Any proposal put forth by trade unions must rely on figures, in order to be taken into account, he added. Trade unions, however, do not have any hope that the executive will modify the letter of intent to the IMF, required to obtain the next payment worth 850 million euros of the loan agreed with this financial body. If the government does not take into account the standing of the unions, Romania will go on an all-out strike on May 31st.
Before this, however, trade unions will try to influence the MPs positions by rejecting the letter of intent as it was designed by the executive. The Boc cabinet wants to ask Parliament for a vote of confidence on the austerity measures package next week. In response, the Social-Democratic opposition has already announced it will put forth a censure motion that will also be backed by the Liberal opposition, although the two parties’ approaches regarding economic recovery are different. The Social Democratic Party and the National Liberal Party, however, claim that the liberal democratic government must resign, because the anti-crisis strategy it has applied has proved to be a disaster. Even some of the Liberal Democrats have voiced criticism against the government’s measures, which is quite an unprecedented move in a party famed for discipline.
The IMF has denied, via its spokesperson Caroline Atkinson in Washington, any interference in the government's decision to cut pensions and salaries. The IMF has only called on Romania to enforce its public financial system, to allow the economy to recover. The budget deficit can also be adjusted by combining the reduction of expenses with tax increases, Atkinson added. It was the government that chose the cut salaries. This is no easy option and, the IMF believes, it has to be accompanied by the protection of vulnerable categories, by limiting its impact on society.
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