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| Romanian PM on the State of the Economy 16/11/2010 |
| (2010-11-16) |
| Last updated: 2010-11-17 13:21 EET |
Romanian Prime Minister Emil Boc on Monday said on the national public TV that the government would assume responsibility on the single payment scheme draft law, which involves Parliament’s vote of confidence.
The draft law of the single payment scheme is to be submitted to the Permanent Bureaus of the two Chambers of Parliament on November 22nd. The ruling coalition made of the Liberal Democratic Party, the Democratic Union of Ethnic Hungarians in Romania and the National Union for Romania’s Progress, will take responsibility for that law, as such a law is mandatory to devise the budget for 2011.
Boc also explained that, through the single payment scheme law, the employees in the public sector next year would retrieve a significant part of the 25 percent salary cut they had lost this year.
Emil Boc:"I can confirm the fact that there will be a significant retrieval of the salary losses that occurred in 2010, and I can also confirm the fact that the minimum salary will be subject to increase, at least on a par with the inflation rate."
The futureg law, Boc also said, will also sort out the issue of incentives, which will only be performance-based as of 2011. The Romanian Prime Minister went on to say that the “natural layoff” policy would continue in 2011. Under an emergency ordinance issued in 2009, following the negotiations with the IMF, the Government decided to cancel the competitive examination policy for vacancies in the administration.
As an exception and under perfectly tenable conditions, the main credit managers might approve no more than 15 percent of the vacant jobs to be taken, but only in keeping with the personnel spending laid down in the budget. Emil Boc hopes the Chamber of Deputies will quickly pass the pension law.
Boc went on to say that law would provide the sustainability of the system and would avoid the still existing payment difficulties, which are the outcome of the political decisions taken in 2007and 2008 regarding the pension increase, with no required funds available.
The Romanian Prime Minister said he relied on the opposition’s being mature and sensible (we recall in Romania the opposition is made up of the Social Democratic Party, the National Liberal Party and the Conservative Party) in their endeavor to support the passing of a series of laws the fate of the country heavily depends on.
And by that we mean the law of the single payment scheme, the pension law, and the 2011 state budget law; Romania assumed all those laws in the stand-by loan agreement concluded with the IMF, the European Union and the World Bank.
The Romanian President last week proposed a moratorium, extended to all political parties, for those laws to be passed, which are vital for the country. Traian Basescu offered his own version of the truce as in the past few weeks the opposition had refused to take part in the parliamentary sessions.
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