balkan insight
02 Nov 2010 / 12:47
The IMF's decision to release further funds for Bucharest if it remains committed to its austerity package is seen as a reward for the government, but trade unions have said they will hold further protests in response.
Marian ChiriacBucharest
“We have called on all members of our trade union to stop working on Wednesday. We hope as many people as possible will join our protest. Furthermore, we are planning a general strike for the near future,” Dumitru Costin, head of the Blocul National Sindical (BNS) told Balkan Insight on Tuesday. BNS is one of the main trade unions in Romania.
The International Monetary Fund announced on Monday that it will release a €900 million tranche of its loan to Romania, but only if the country approves the pensions law and controversial public sector pay reforms, as well as the reduction of state arrears."We reached an agreement at the level of experts. As soon as the conditions are met, we can expect the board to unlock a new tranche," Jeffrey Franks, the IMF representative in Bucharest, said at a press conference. “We have no other options. And we are committed to continuing with austerity measures,” Romanian Prime Minister Emil Boc said in an interview shortly after the IMF announcement. “I know that many people are already affected by the austerity measures, but at least we brought stability and prospects for economic growth next year.”
The decision is unlikely to be welcomed by Romanians already affected by unpopular measures such as 25 per cent cuts to public sector wages, the axeing thousands of state jobs and an increase to the value added tax by 5 percentage points.
The continuation of the measures is expected to lead to further protests and opposition.
Thousands of state employees in Romania’s finance, education, and health sectors, as well as policemen, have gone to the streets in recent months to protest against the government's policies.
The center-left opposition, which last week failed to push through a no-confidence motion in parliament, says it will continue to put pressure on the government and may file another motion to call on the government to resign.
Crisis-hit Romania is dependent on a €20 billion rescue package from the IMF, the European Union and the World Bank, which it was granted in exchange for austerity measures aimed at taming the country’s deficit.
“We have called on all members of our trade union to stop working on Wednesday. We hope as many people as possible will join our protest. Furthermore, we are planning a general strike for the near future,” Dumitru Costin, head of the Blocul National Sindical (BNS) told Balkan Insight on Tuesday. BNS is one of the main trade unions in Romania.
The International Monetary Fund announced on Monday that it will release a €900 million tranche of its loan to Romania, but only if the country approves the pensions law and controversial public sector pay reforms, as well as the reduction of state arrears."We reached an agreement at the level of experts. As soon as the conditions are met, we can expect the board to unlock a new tranche," Jeffrey Franks, the IMF representative in Bucharest, said at a press conference. “We have no other options. And we are committed to continuing with austerity measures,” Romanian Prime Minister Emil Boc said in an interview shortly after the IMF announcement. “I know that many people are already affected by the austerity measures, but at least we brought stability and prospects for economic growth next year.”
The decision is unlikely to be welcomed by Romanians already affected by unpopular measures such as 25 per cent cuts to public sector wages, the axeing thousands of state jobs and an increase to the value added tax by 5 percentage points.
The continuation of the measures is expected to lead to further protests and opposition.
Thousands of state employees in Romania’s finance, education, and health sectors, as well as policemen, have gone to the streets in recent months to protest against the government's policies.
The center-left opposition, which last week failed to push through a no-confidence motion in parliament, says it will continue to put pressure on the government and may file another motion to call on the government to resign.
Crisis-hit Romania is dependent on a €20 billion rescue package from the IMF, the European Union and the World Bank, which it was granted in exchange for austerity measures aimed at taming the country’s deficit.
balkan insight
Δεν υπάρχουν σχόλια:
Δημοσίευση σχολίου