Friday, November 26, 2010

AP: Romania's government adopts wage laws

Romania's government says it has sent to Parliament the drafts of two wage laws needed to keep a bailout agreement with the International Monetary Fund.

The government adopted the drafts late Wednesday, increasing public sector wages by 15 percent and the minimum wage from 600 lei (euro139) to 670 lei (euro156), from January 2011.

Prime Minister Emil Boc said that's all Romania can afford during the crisis. The country pledged a budget deficit of 4.4 percent of gross domestic product next year.

In the summer, the government slashed public sector wages by one-fourth, triggering a series of protests.

Romania took a euro20 billion ($26.67 billion) loan from the IMF, the European Union and World Bank last year, when its economy shrank by 7.1 percent.

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