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Thousands of Romanians protest against freeze on public sector wages

Watchman

Watchman

Alfrescian
Loyal
Thousands of Romanians protest against freeze on public sector wages
Posted: 08 October 2009 0141 hrs


Romanians protest against the new law of the civil servants wages

BUCHAREST : Thousands of Romanians protested outside the government headquarters in Bucharest Wednesday against a freeze on public sector wages amid a severe recession in the biggest demonstration in 10 years.

The protesters -- numbering 15,000 according to the police and 30,000 according to trade unions -- also called on the government to raise the minimum wage, currently around 145 euros (210 dollars).

"Down with the government" and "Shame on you," the protesters chanted. Some carried banners reading "We want decent jobs."

"If our voice is not heard we will go on strike starting November 6," Amalia Marin, a 38-year-old teacher from Calarasi (100 kilometres, 60 miles, south of Bucharest), told AFP.

The government last month adopted a reform of public wages to cut the bulging budget deficit, which is expected to top 7.3 percent of GDP in 2009.

The national statistical institute on Wednesday said industrial production in August had fallen year-on-year to 5.9 percent.

The belt-tightening move is part of Romania's commitments to the International Monetary Fund (IMF) and the European Union in return for a 20-billion-euro bailout plan.

Prime Minister Emil Boc also vowed on Tuesday to push ahead with a controversial reform of public sector pensions, drawing criticism from the opposition.

But the fate of this bill is uncertain as his minority government faces a no-confidence vote next week.

"The future of the government is in the hands of the opposition", the biggest Romanian daily newspaper, Adevarul, underlined on Wednesday.

A coalition government, including Boc's Liberal Democrat party, collapsed on October 1 after the Social Democrats quit in protest at the premier's sacking of Interior Minister Dan Nica over allegations of election fraud.

The Liberal Democrats then formed an interim government and promised to go ahead with the planned reforms to help boost Romania's public finances.

"We need these measures to be taken now. If not, it could lead to a prolonged recession," Nicolae Chidesciuc, senior economist at ING Romania, told AFP.

The political turbulences "lower the foreign investors' confidence in Romania and the ability of local firms to expand," he added.

However, according to him, "the likelihood of implementing these measures is lower now" that the government is "weak".
 
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