Tanasescu: Without structural reforms, Romania will get suffocated in 2010

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Romania will get even more suffocated in 2010, unless accelerated structural reforms are implemented, representative of Romania to the International Monetary Fund (IMF) Mihai Tanasescu told a private TV channel.

‘Without accelerated structural reforms, the country will suffocate even more beginning with 2010. I think the idea with the ten days of unpaid holiday in the public sector was misunderstood.

If we understand exactly how bad things are and how severe are the problems we are facing right now, then it should be clear nobody should go home, even unpaid, but we all have to stay and work on less pay and I hope now it is clear for all of you,’ Mihai Tanasescu said.

The IMF official also added that, when in no more than 4 years, there are being hired some 450,000 people, 350,000 of whom in the central and local administration only, it is clear something is not quite right.

The Romanian Minister of Finance Gheorghe Pogea on Tuesday announced that all the employees in the budget sector will have their work schedule cut by the equivalent of 10 days, over September – November, which will result in a total cut in the budget expenditure by 0.3 percent of the Gross Domestic Product (GDP), that is approximately 1.5 billion lei.

Moreover, he also added that no supplementary hours will be paid from now on, with the employees to get free hours in exchange, while the bonuses were canceled too.

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