Romania vows to proceed with austerity measures

Romanian Prime Minister Emil Boc said on Wednesday (May 26th) that his government has no intention of giving up its austerity measures, despite public opposition and a confidence vote planned for next week. The measures envision slashing public sector wages by 25% and reducing pensions by 15%. The decision to proceed was formalised in a letter of intent sent to the IMF late Wednesday. Labour unions reacted by threatening nationwide protests. The country’s three biggest unions said at least 400,000 teachers, public administration staff and health care workers will walk off their jobs Monday if parliament approves the tough belt-tightening measures.