Romanian Prime Minister Emil Boc late on Monday asked for a Parliamentary vote of confidence over the government’s efforts to adopt drastic measures to cut spending, including lowering public wages by one-fourth and pensions by 15 per cent.
“I ask for a vote of confidence in order to secure Romania’s future. It is time to put our public finances in order. So far no one has had the courage to do so,” Boc said.
A vote in the Parliament over the proposed measures is expected late this week.
In a related development, the opposition Social Democratic Party, PSD, submitted a no-confidence motion after Prime Minister Emil Boc proposed major cuts in public wages. The opposition, including PSD, currently commands about 200 seats and needs 236 votes to win the no-confidence vote, which would topple the government and kill its reform plans.
Recession-hit Romania, which is relying on a €20 billion IMF-led loan, has pledged drastic public spending cuts to rein in its deficit, which this year stands at 6.8 per cent, and restart its economy, which continued to
contract in the first quarter.
Starting from June 1, state sector wages is be cut by 25 per cent and all salaries, including the minimum wage, will be affected. Jobless benefits and pensions will be cut by 15 per cent.