Tag: austerity

  • Budget and protests

    Budget and protests

    After intense negotiations over the distribution of funds in the center-right governing coalition, the drafts of the two laws that will regulate Romanias public finances and economy this year — namely the state budget and the social security budget bills – have reached Parliament. The deadline for the plenary vote is the beginning of next week, with a tight schedule of debates in the specialized committees. At coalition level, it was decided that the MPs of the three political parties making up the coalition, the National Liberal Party-PNL, Save Romania Union-PLUS Alliance -USR PLUS and the Democratic Union of Ethnic Hungarians in Romania – UDMR, would not table amendments and would vote on the bills in the form adopted by the executive.



    Here is the Liberal leader Ludovic Orban: “Further subsequent improvements can be made after the first six months, there is still the possibility of adjusting the budget, but from my point of view the budget is built in such a way as to put in motion the engines of economic development. It is based on investments, increased absorption of European funds, and supporting the private environment through various programs. “



    From the opposition, the Social Democratic Party – PSD and the ultranationalist Alliance for the Union of Romanians – AUR, criticize this years budget, which they label as an austerity budget. The Social Democrats have tabled amendments required by everyday reality, as the partys first vice-president, Gabriela Firea, says: “All our colleagues across Romania have come up with several amendments, which represent the reality of the country. It’s not something against the government. We have tried to give up some that were not so pressing, just to give priority to those that are much needed in communities right now. “



    In the meantime, the financial constraints for the two budgets have been nailed down in Parliament, through the ‘cap’ law, adopted on Wednesday also by the Chamber of Deputies, as a decision-making body, after passing the Senate: this year, the deficit cannot exceed 7.16% of the GDP, and personnel expenses cannot go over 9.8%. The opposition argues that these percentages will not allow the countrys development, while the ruling coalition claims that this is all Romania can afford in a pandemic year, in which investments and the economic recovery should be given a chance. Meanwhile, trade unions continue to protest budget austerity measures.



    About 100 trade unionists from the Publisind Federation – affiliated to the National Trade Union Bloc, which represents 35,000 employees in many fields — protested in front of the Presidency, demanding the elimination of wage inequities in the public system, the application of the framework-law on public sector salaries and a minimum wage correlated with rising consumer prices. The unionists also protested in front of the Transport Ministry: the rail company employees demanded, among other things, investments for the modernization of the railway infrastructure and the application of the railway staff status – a law that would allow for a 30% -40% increase in salaries and better working conditions. (L.Simion)

  • Last adjustments to the draft budget

    Last adjustments to the draft budget

    The centre-to-right coalition government in Bucharest
    has made the last adjustments to the state budget and of social securities in
    2021, before sending it to Parliament for approval. This yearly budget had a
    difficult birth, and came into being only upon heated talks between the ruling
    coalition made up of PNL-USR/PLUS and UDMR and the opposition PSD on the fair
    distributions of funds whose shrinking has been caused by the pandemic and the
    conditions aimed at curbing the budget deficit.






    While political leaders in the ruling coalition have
    refrained from bringing fresh amendments in Parliament in an attempt to speed
    up approval procedures, the opposition Social Democrats have come up with a
    series of amendments, which they say could contribute among other things to rises
    in pensions and wages, frozen by their political opponents. In fact, the Social
    Democrats on Monday blamed the country’s Liberal Prime Minister Florin Citu for
    having endorsed an austerity budget.
    ‘The budget this year is balanced, credible, accepted by our international
    partners and focused on investment’ the Prime Minister replied lashing out at
    the PSD representatives, whose latest
    budget amendments account for 6% of the GDP, funds which Romania could
    contribute to the European budget.






    Florin Citu: A budget
    focusing on investment, because we have made it clear that only investment can
    lead to Romania’s development; but it is a budget, which is pushing reforms and
    this is scary, isn’t it? You’re afraid the move is going to put an end to the
    well-paid jobs of some of your supporters in high positions. I can tell you,
    this year we are going to see reforms being implemented.






    UDMR has referred to a post-crisis investment-oriented
    budget while the USR has described it as a budget of solidarity and responsibility
    aimed at kick-starting the country’s economy. Here is USR leader with the
    Chamber of Deputies Ionut Mosteanu with more on the present budget.




    Ionuţ Moşteanu: This budget is
    focusing on development and investment. Today the government comes with an investment
    budget of 12 billion euros, the biggest in history.






    ‘The Prime Minister is the absolute champion of hatred’,
    PSD leader Marcel Ciolacu retorted, adding that ‘Florin Cîțu hates the
    employees in state-owned institutions, as he is slashing their salaries and
    jobs’. According to Ciolacu, the Prime Minister hates the private sector as
    well because he has constantly failed to fulfil his pledges to this sector in
    the past year.






    Marcel Ciolacu: Instead of
    endorsing a budget aimed to repair, you have taken the axe in your hands and
    started slashing the incomes of the Romanians. You don’t give a fig that prices
    in energy, food and medicine are higher!






    PSD believes that Romania is a country adrift because
    the government has allotted the smallest financial package in the EU to the fight
    against the pandemic and to the process of kick-starting the economy.




    (bill)