Energy Companies To Have Budgets Ready Next Week

Tradus de Andrei Năstase
Ziarul BURSA #English Section / 18 mai 2009

Alina Toma Vereha

The budgets of the energy companies controlled by the Ministry of Economy will be approved latest next week. "We are still consulting with the Ministry of Finance to adapt the budgets to the current market conditions and the provisions of the agreement with the IMF. The draft budgets presented by the companies were made in the beginning of the year, before the agreement with the IMF was signed," Ministry of Economy Secretary of State Tudor Serban told BURSA.

He explained that the energy companies making a profit needed to adjust salary raises and productivity improvements to the requirements of the IMF and the current economic situation. "Salary raises in the profitable companies should not exceed a certain percentage," Serban added, without specifying the percentage. The money-losing companies will have to freeze salaries and cut costs, including through job cuts. "The new draft budgets are practically ready, but we need to clarify some details with the Ministry of Finance," Serban concluded.

In the meantime, several federations of energy unions have announced intent to resume pickets until the budgets are approved. Ongoing investments in the energy companies are blocked, while tenders for new investments have been postponed. The union members firmly believe that nothing prevents the adjustment of existing salaries by the inflation rate within profitable companies.

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