Budget salary system has to be simplified, union leaders say

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By changing the system of applying taxes on the insurance budget for each job in the economy of Romania several hundred thousand jobs will be brought to light, said on Tuesday, Dumitru Costin, president of BNS unions, after a talk with the representatives of the International Monetary Fund (IMF).

The IMF officials have talked with the leaders of the unions and the employers associations about the fall of the budget expenses, with one of the area in view being that of the public sector.

„I agree that the restructuring of the jobs in the public institutions has to be made on the basis of an analysis which does not affect the quality of the services.

I remind you that in 1997 we laid off in August, September and in October we hired people again, because we did away with jobs by which those still employed could not be used,” said on Tuesday Bogdan Hossu, the leader of Alfa Cartel, after the meeting with the IMF officials.

„One has not to use, at this moment, the single salary quota.
The system of salaries in the budget sector has to be aimed, in the opinion of the IMF, at transparency and to give the efficiency of the administration system.

At stake is a postponement of the deadline, not for October, this time, but for later on, in order to give the opportunity of a dialogue, including simulations, in connection with the salary system in the budget sector, ” said Bogdan Hossu.

The first mission of the IMF of assessment of the way in which Romania has met its duties in the macroeconomic programme arrived on Wednesday, July 29, in Bucharest and will stay in Romania until August 10.

The purpose of the mission is the preparation of an evaluation report of the meeting of the objectives in the Economic Programme of Romania, which is supported by the IMF, the EU, the World Bank and other international financial institutions.

The representatives of the IMF have announced that they are willing to be flexible in their negotiations with the authorities in Romania, because the economic situation of the country has worsened.
„We are at the beginning of the talks and we are evaluating the macroeconomic programme.

During the talks, we have taken into account the way in which the economic situation has worsened and its effect on the budget. We are ready to be flexible, because the economic situation has worsened,” said the head of the IMF mission in Romania Jeffrey Franks.

The financing agreement with the IMF covers a period of 24 months, with the IMF giving Romania 12.5 billion euros in eight tranches. By the agreement with with EC, Romania will receive a loan worth five million euros, in five tranches until the end of 2011.
Also from the World Bank, Romania gets a financial package of one billion euros, to be given in tranches until 2010.

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