President: Requests For Raises, A Mistake The Government Must Not Accept

N.I.

While visiting Croatia yesterday, President Traian Basescu said it was a mistake to ask for salary raises in Romania which "did not do too well in the first three months of the year." He also pointed out that the Finance Ministry had borrowed money from the market to pay salaries and pensions on time. Attending a meeting with representatives of the Romanian community in Croatia, President Basescu gave a summary of the situation in the country, emphasizing that the Government was doing everything possible to contain the economic crisis, but it was necessary that the people, too, should display solidarity with the Government"s measures.

President Basescu explained: "I am not a pessimist, maybe because I am better informed. However, it is obvious that e are facing a crisis and, beyond what the Government can do, it is essential that Romanians prove solidarity in the face of facts. If people want to disregard reality and think that it is still possible to ask for a raise today, it is obviously a mistake that the Government cannot possibly accept. But this is the way things are and we need to deal with everything one way or another."

The president voiced confidence that the Romanian economy would resume an upward trend in the Autumn. He also pointed out a massive decrease in the current account deficit, from over 12% to 8%. In his view, austerity is mandatory to keep the situation under control, NewsIn reported. The president explained to the representatives of the Romanian community in Croatia that Romania had taken a loan from the IMF and the European Union precisely in order to keep the economy on track. He added that Romania "did not do too well in the first three months of the year" as the Finance Ministry had borrowed money to pay salaries and pensions on time.

In turn Premier Emil Boc said on Tuesday that the Government was making efforts to pay salaries and pension during the economic crisis as the payment raises decided in 2008, when the economy was still growing, were affecting the budget for the entire 2009.

Emil Boc explained: "The Government is making efforts to pay salaries and pensions in this difficult period. I want you to know that the expense of paying salaries and pensions this year is higher than it was in 2008, when the economic growth was 7.8%, which, however, did not prevent a deficit of 5.2%. Why? Because decisions were made in different months of 2008 to increase pensions and salaries immediately and those decisions are applicable throughout 2009."

The Prime minister added that the Government was making a "substantial and intense" effort to keep paying salaries and pensions in the currently applicable amounts and was even looking for solutions to increase them.