Romania: severe cut on public spending

Minus 25% on wages, minus 15% on pensions. The Romanian government just presented a drastic severity program to prevent the economy from losing control. Indeed, the measures implemented are drastic: on June 1st, the salary of the 1.3 million civil servants is going to be cut by 25%, their 13th month cancelled in 2010, and nearly 100,000 jobs are going to be cut in the civil service. “Spared” at first, the employees in businesses where the State is a majority shareholder are also going to see their income drop by one fourth.
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eir 13th month cancelled in 2010, and nearly 100,000 jobs are going to be cut in the civil service. “Spared” at first, the employees in businesses where the State is a majority shareholder are also going to see their income drop by one fourth.

Civil servants aren’t the only ones affected by this cut on public spending. The key area affected is pensions. Indeed, the government provides for a 15% cut in pensions effective on June 1. Minimum pensions are also going to be cut, from RON 350 to RON 30

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