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| MEDIA HEADLINES 06/08/2010 |
| (2010-08-06) |
| Last updated: 2010-08-09 13:11 EET |
‘The government has a lot of work to do to take the country out of the crisis’, said Jeffrey Franks, the head of the IMF team for Romania I, in an interview with the financial newspaper Bursa. Speaking after the evaluation visit to Bucharest, he said that Romania could start the year 2011 with a much better fiscal position if it complied with the IMF imposed conditions for the stand by loan agreement. In Jeffrey Franks’ view, that would determine investors to find Romania attractive once again. If macroeconomic predictions may sound encouraging, the daily paper Gandul writes that quote “an entire country looked at the IMF’s meeting with the Government to understand what is going to happen with state wages and pensions” unquote.
However, the conclusions of the meeting are, according to that paper, one piece of good news and one piece of very bad news: state employees who still have a job next year could have a raise of 10% of their salary after the 25% slash operated in 2010 as part of the deal with the IMF. That, though, comes at a price: the Government is firing people left and right in order to afford that. By the end of the year, the newspaper explains, over 100,000 people working in the public sector will be fired, according to the agreement between the government and the IMF, and next year another 15,000 people will be fired.
Both the opposition and the media make no efforts to conceal their optimism about the effects of those austerity measures. The daily paper Romania Libera writes regretfully that, quote “ the redundancies made in the public sector so far have not resulted in savings when it comes to staff spending, but in increases” end of quote. Evenimentul Zilei is also convinced that the measures taken by the virtual head of the government, President Traian Basescu, and formally endorsed by Prime Minister Emil Boc,quote “ do not help the economy much” unquote. The newspaper adds that, quote “ while other states are already taking advantage of the results yielded by austerity measures, the Romanian government takes more and more restructuring measures. With at least 74,000 state employees fired this year, with pensions frozen for 2011, with state subsidies for home heating suspended, an inflation rate that will reach 8% by the end of the year, the image of local economy is far from rosy” end of quote. Evenimentul Zilei concludes that, quote “ the discourse of the president and of the government is far from clear on what they plan to do to kick start the economy” unquote.
Newspapers are sarcastic when reporting on the latest interview given by President Basescu on public television. Romania Libera writes that, quote “ the president, who looked tired, defensive and jumpy, is taking it out on everyone else” end of quote. The newspaper seems scandalized by the fact that the president did not simply thank Romanians who work abroad and don’t come back home to collect unemployment benefits, but he suggested to doctors and teachers who are angry at their meagre salaries to join them.
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