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THE WEEK IN REVIEW 20-26/09/10
(2010-09-24)
Last updated: 2010-09-27 19:49 EET
The main trade unions in Romania have begun a series of rallies in Bucharest, and other major cities, this week, to protest against the government’s austerity policy. Health care, education and social services employees have taken to the streets one after the other, chanting slogans criticizing the government and president. Police officers and prison wards also held protest rallies. They all call for the reinstatement of salaries at 2009 levels and for layoffs to be eliminated. Trade unions are also unhappy with the new pension law and the unitary pay law. Along with protest marches and rallies, union leaders talked to the Labour and Finance ministers, but failed to reach an agreement. They walked away with nothing more than promises of new meetings scheduled for next week.


The economic crisis in Romania continues to send shockwaves throughout the country, as the authorities and the National Bank have indicated that the economy will not see growth in 2011. The economy risks not attaining the targets planned for next year, which will translate into budget deficits higher than those anticipated. Another reason, for which budget deficit targets will, most likely, not be attained, is the population’s resistance to the reduction of public expenses, a socially painful process. The National Bank believes that the most appropriate measure would be a temporary agreement with the IMF, under which Romania would use IMF money only if the state is not able to achieve the necessary adjustments due to external factors. President Traian Basescu was the first to confirm his intention to sign a new agreement with the IMF.


The parliamentary fight between the opposition and the regime in Romania regarding the pension law is ongoing. This week, the National Liberal Party and the Social Democratic Party contested the new law at a Constitutional Court. Liberals claim that the law has essential flaws, such as encouraging discrimination and affecting acquired rights, while Social Democrats say that the law was adopted last week by parliamentary fraud. The Social Democratic Party told president Basescu that they will call for his impeachment if he promotes the pension law. The Constitutional Court will analyse the opposition’s contestations on Wednesday, and if the Social Democratic Party and the National Liberal Party eventually meet their target, the law will be sent back to Parliament.


On Thursday, president Traian Basescu made a visit to Bulgaria, the first visit of a Romanian president to the neighboring country in the last 7 years. He met with his Bulgarian counterpart Gheorghi Parvanos and discussed bilateral relations, as well as EU and NATO cooperation between the two states. The recent expulsions conducted by France, that sent thousands of Romanian and Bulgarian Roma back to their countries of origin also ranked high on the agenda. Bucharest and Sofia will not accept that Schengen Space accession hinge on the Roma community issue, the two presidents said, recalling once again the European citizen status that Romanian and Bulgarian Roma people have. Basescu and Parvanov discussed the need to design a social strategy to integrate the latter within the EU.


Prime minister Emil Boc and foreign minister Teodor Baconschi represented Romania at the 65th UN General Assembly in New York. Boc attended a high-level meeting on Wednesday, regarding the Millenium’s Development Objectives: reducing poverty and hunger in the world, as well as combating malaria and other diseases. Boc said that, besides food security and action against climate change, Bucharest views as equally important the reconstruction and consolidation of peace in conflict-hit areas and the non-proliferation of WMDs. The Romanian also pleaded for the better representation of Eastern European countries in the future make-up of the Security Council. In another move, Romanian foreign minister Teodor Baconschi attended a EU-US ministerial meeting, held on the fringe of the UN Assembly. He discussed Romania’s priorities regarding the new NATO strategic concept and said that Bucharest wanted the European and Euro-Atlantic partners to keep their attention on volatile areas close to the Alliance, such as the Black Sea, the Middle East, the Mediterranean area and the ex-Soviet space.
 
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