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THE WEEK IN REVIEW 06-12/09/2010 |
(2010-09-10) |
Last updated: 2010-09-13 14:47 EET |
The Romanian government approved this week a letter of intent to the International Monetary Fund, an institution with which Bucharest signed a stand-by agreement in the spring of 2009. Under this document, authorities in Bucharest pledge to make 74,000 state employees redundant by the end of the year besides the 27,000 who have already been laid off. Also, expenses incurred by goods and services are to be cut down by 10%.
These measures are meant to help Romania meet its 6.8% deficit target. In 2011, Romanian authorities have to meet a 4.4% budget deficit target, which translated, among others, into further redundancies in the public sector. Other measures include freezing pensions in 2011, eliminating the 13th salary and revising the social assistance system. The executive in Bucharest has also changed the way in which people who earn their incomes based on a royalty agreement, make insurance payments. Labour minister Ioan Botis said the relevant ordinance would come into force at the beginning of next week:
“Income payers will submit their declarations so payments can be made. We have therefore eliminated the problems related to the submission of declarations and payments. The total amount of individual payments remains at 16.5% of the entire income.”
Last month, the system to collect contributions of people who are paid based on a royalty agreement, which have recently been included in the Tax Code, has generated the discontent of the people concerned, who now have to wait in line for hours.
Romanian authorities will work out a strategy by the end of the year to integrate the Roma population and collaborate with the French authorities on a plan to obtain European funds aimed at the social inclusion of the Roma. These decisions were made public on Thursday after talks by officials in Bucharest with French state secretary Pierre Lellouche and French minister for immigration, Eric Besson.
On the other hand, the two ministers said it is out of the question for Paris to suspend repatriations as required by a resolution passed by the European Parliament. Brussels condemned the actions taken by the French government to repatriate groups of Roma coming from Romania and Bulgaria and called for an immediate halt to these measures. The resolution also writes that the Roma issue should not affect the two countries’ entry into the Schengen area. In Bucharest, the Romanian foreign minister, Teodor Baconschi, said he wished to avoid controversies:
“We do not see the resolution passed by the European Parliament as a helping hand extended to Romania. We have work to do, goals to meet, we have to mobilise ourselves more and will do so.”
Romanian MPs have rejected a simple no-confidence motion on agriculture filed by the parliamentary group of the Social Democratic Party and the Conservative Party, in which the government is accused of lacking a coherent investment programme. The motion also criticises the fact that Romanian farmers did not receive the needed assistance, which means that a considerable amount of crops are compromised this year. Through the recently appointed agriculture minister, Valeriu Tabara, the government believes the responsibility for the existing situation lies with all political parties, both in power and in opposition. Tabara recalled that the problems laid down in the no-confidence motion have been repeatedly raised in the last 20 years, but no solution has been found so far.
Sorin Ovidiu Vantu, a controversial Romanian businessman and media tycoon, was temporarily detained for 29 days on Thursday. According to the General Prosecutor’s Office, Vantu is believed to have sent money to a former associate, Nicolae Popa, who fled Romania in 2000. In 2006, Popa was convicted to 15 years in prison in a case regarding the collapse of a pyramid scheme and was arrested in Indonesia, last year. His extradition is expected.
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