Decisive week for budgetary sector reform

The decisive week when the Boc Government has to finalise, pass and send to Parliament the set of budget sector restructuring measures for which it undertakes responsibility begins today.
While unions are threatening to go on general strike on the 31st of May, employers’ associations are behind the Government in its decision to cut pensions and salaries instead of raising taxes. A surprising position came from IMF’s Managing Director Dominique Strauss-Kahn, who said the Fund had recommended harsher taxes for the rich instead of salary cuts.
Jeffrey Franks, head of the IMF mission to Romania, specified that the institution in Washington agreed that the solution chosen by the Government would allow keeping the budget deficit within adequate limits.
The Finance and Labour Ministries are expected to complete calculations on the reductions of budgetary spending after a week of talks with the unions and the employers’ associations.