Austerity measures are temporary and will correct structural deficits

Publish date: 30-05-2010
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Romania has opted for a package of austerity measures that should correct structural deficits and make it possible for funds to be allocated to the private environment with a view to supporting the economic development, Premier Emil Boc told a video-conference with prefects.

To diminish budget spending they plan, among other things, to cut budget employees' salaries and pensions by 25 percent and 15 percent respectively, some social services, but also to recalculate the so-called "special pensions," which made it possible that between the lowest and the highest pension of the public system there should be a 1:100 ratio, namely 350 lei and about 37,000 lei (1 euro=4.16 lei).

According to the Prime Minister, the austerity measures will not affect the 600 lei minimum salary, the 350 minimum social pension, the guaranteed minimum income, the scholarships of students and pupils, the child allowances, amounting to 200 lei for children up to two years of age and for disabled children up to the age of three, as well as the state allowance for children amounting to 42 lei a month, the benefits paid to war veterans and political prisoners as well as the life annuities paid to sportsmen.

As for the allowance meant to help bring up children, the Prime Minister said that it would be cut by 15 percent, but not under 600 lei a month, to which one must add the child allowance amounting to 200 lei a month.

AGERPRES

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