Thursday, August 4, 2011

Romanian minister nixes IMF hopes of wage hikes

BUCHAREST, Romania—Romania's labor minister says it would be foolish to increase public sector wages, days after an International Monetary Fund official said the country could afford to do so, as the economy rebounds.

In an interview Wednesday with Realitatea TV, Sebastian Lazaroiu said the government should not do "foolish things like raising salaries now." He said wages, which were slashed by one-fourth in July 2010, could be reviewed next year after the government sees what its budget is.

IMF envoy to Romania Jeffrey Franks said Monday the government could raise salaries soon. He predicted that exports and a good harvest would help the economy to grow by 1.5 percent in 2011, after two years of economic decline

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