Romania's labor legislation needs rapid reforms, central bank governor says

Labor legislation in Romania is "stiff and obsolete" and needs to be reformed in accordance with the current rate of unemployment to avoid blocking the economic advance, according to Mugur Isarescu, governor of Romania's Central Bank (BNR).

The present labor rules are in the disadvantage of the employer and were established in a period when the unemployment rate was much higher than the current level of around 3 percent, added Isarescu.

The changes in the legislation aim to reduce red tape and to simplify the fiscal procedures.

The country's prognosis body (CNP) estimated an average 4.6 percent unemployment rate for 2008, down from 4.7 percent in the previous year.

The annual jobless rate idled at 3.9 percent in August, but increased 0.1 percentage points on July, according to data from the country's labor force agency (ANOFM).

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