Resuming consumption is needed for economic growth, salary rises help consumption

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Population’s resuming consumption is needed for economic growth, and the salary rise in the public sector will have a direct, positive effect on the consumption, Government’s spokesman Dan Suciu said, after PM Mihai-Razvan Ungureanu met with BNR governor Mugur Isarescu.

Suciu stressed that the talk between PM Ungureanu and Isarescu played the role of correlating BNR and Government’s policies.

It becomes more and more clear that consumption must be resumed for the economic growth to go on, said Suciu.

He also explained that the salary rise would have a direct effect on the consumption growth, but a likely measure of ‘reducing the contributions to the social securities will be felt later.’

‘If the salary rise has an impact upon the direct consumption in a certain proportion, the measure aimed at cutting the social welfare contributions – still to be analyzed and debated – will have subsequent effects upon the resuming of consumption. The Government is currently conducting an analysis upon these two measures,’ Suciu explained.

The Govt’s spokesperson said the governance program reads about the process aimed at analyzing the data of the first quarter of 2012 for possibly restoring public wages, but not about a cut in the CAS (social welfare contributions).

‘The governance program reads nothing about the CAS. The discussion is launched at this moment. Obviously, the necessary assessments are being conducted. On the other hand, the document included from the very beginning provisions regarding the evaluation related to the wage changes or recouping at least part of the incomes, amid the present budgetary conditions and the conditions of budgetary sustainability we shall allow when such decision is taken,’ Dan Suciu said.

He also underscored the Government is not launching the debate weather to choose between rising the salaries to the 2010 levels or reducing the CAS. According to him, in both cases, an analysis of the economic situation must be however made at the end of the first quarter of 2012 in order to adopt any of these measures.

‘The eventual salary rises or the cut in the CAS must be made according to the existing budgetary resources and that depends mainly on two elements: reducing the tax evasion and the state’s capacity of bringing more money in the budget, at least by combating the tax evasion, and the economic growth, an essential condition for any significant construction,’ the Executive’s spokesman said.

As regards the pension rise, Dan Suciu said this topic was not tackled at the meeting between Isarescu and Ungureanu.

At the same time, the official stressed that the Government’s primary objective is the economic growth and to improve the population’s living standard.

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