Romanians protest wage cuts

Author: 
ALINA WOLFE MURRAY | AP
Publication Date: 
Thu, 2010-05-20 03:41

The 40,000 or so protesters blew whistles and yelled “Down with the Lying Government!” while blocking traffic in central Bucharest for two hours.
Some pelted an official with the Economy Ministry with water and stones.
“You have pawned our future,” they shouted, and union leader Iacob Baciu said they would call a general strike on May 31 if the government went ahead with plans to cut public wages by a quarter and pensions by 15 percent.
Despite the pandemonium outside his office, Prime Minister Emil Boc said he would ask Parliament to approve the cuts to come into effect on June 1, calling them “the only viable solution for the country’s future.”
Romania is struggling with a budget crisis, with funds to cover only 20 days out of every month, Central Bank Gov. Mugur Isarescu said this week.
The economy shrank 7.1 percent last year, and the government took out a 20 billion euro ($24.86 billion) loan from the International Monetary Fund, European Union and World Bank to pay state wages.
Finance Minister Sebastian Vladescu has said 70,000 of the state’s 1.36 million jobs must be eliminated by 2011 — yet another blow to the nation of 22 million, where the average monthly wage is about 450 euro ($575). The IMF has said up to 1 million people in Romania may be unemployed by year’s end, compared with the current figure of about 740,000.
“Our salaries are very small. They weren’t good before, but with the cuts we don’t see anything good coming,” said 33-year-old nurse Valentina Voinea, who said she earns 900 lei ($265) a month. “I am sorry I haven’t emigrated.”
In a sign of the anger, the crowd booed and hurled water and stones at Economy Ministry official Marcel Hoara after he took part in a live televised debate. Police escorted him from the area.
“We are aware that the government will not stop at these measures. In a few months, they will increase VAT and the income tax,” said 64-year-old teacher Constantin Dragomir.

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