România libera, 7 May 2010

Left warns of austerity budget “genocide”

Published on 7 May 2010 at 11:42
România libera, 7 May 2010

Cover

"State embarks on shock therapy," headlines România liberă, in the wake of yesterday's announcement by President Traian Basescu of austerity measures designed to cut Romania's budget deficit and prevent a Greek style economic meltdown in the country. In contrast to the package proposed by the International Monetary Fund — based on a tax and VAT increase — the government's plan focuses on massive cuts to public sector salaries (-25%) and pensions (-15%), and unemployment benefit (- 15%) to be introduced as of 1 June. The cuts will also be accompanied by the mass lay-off of close to 140,000 civil servants before the end of the 2010. România liberă notes that "the head of state and the governor of the National Bank of Romania held their own in negotiations with representatives of the IMF, overcoming their distrust with a semblance of confidence," however, socialist politicians and trade unions have deplored the Greek style measures as "genocide".

Categories

Was this article useful? If so we are delighted!

It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans.

Discover our subscription offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic