Four critical points to discuss with the IMF

The programme concluded with the International Monetary Fund has “four critical points”, beside registered achievements, therefore negotiations between the Romanian Government and the IMF delegation will not be easy. “As a matter of fact, none of the negotiations held so far was easy,” prime minister’s advisor Adrain Vasilescu stated.

The four critical points of the discussions between Romanian and foreign officials are inflation, arrears, wages’ level as compared to keeping a lot of employees in the budgetary sector and pensions’ increase, Vasilescu specified.

“The Government established firm criteria for reducing arrears, by connecting them to employees’ and managers’ salaries. It was more difficult when it came to employees’ salaries, as there is a huge gap between salary laws and the stipulations of the Constitution,” Vasilescu explained.

The Executive set as a target to lay off 65,000 administration employees this year, based on the state budget law. Vasilescu admitted the failure of this policy, but added that a first step was taken this year, nevertheless.

“Although the Government offered an example by cutting down the number of jobs to half, ministries and other institutions did not follow it,” Vasilescu added.

He underlined that, unlike before, at the meeting with the IMF representatives the Executive will present several achievements, such as inter-banking interests’ reduction, exports standing at 5 billion dollars in the first half of the year, “Romania having the capacity to outrun the estimated 10 billion dollars,” industrial output increase that generated economic growth and unemployment cut down.

“IMF must take these achievements into account,” Vasilescu said.