ROMANIA’S GOVERNMENT has narrowly survived a parliamentary no-confidence vote over plans to slash state pay and benefits, as it tries to revive the nation’s economy and secure billions of euros in international aid.
The no-confidence motion tabled by the opposition Social Democrats failed by just eight votes, prompting the party to launch a challenge to the cutbacks in Romania’s constitutional court and leading analysts to warn that the unpopular austerity measures could yet be derailed.
The centre-right government, led by prime minister Emil Boc and closely linked to President Traian Basescu, intends to cut public sector wages by 25 per cent and reduce pensions and other welfare payments by 15 per cent to reduce Romania’s debt and budget deficit and avert the threat of a Greek-style financial crisis.
The government pledged to implement the swingeing cutbacks in talks with the International Monetary Fund (IMF), which in return is expected to resume payment of a €20 billion aid package that helped Romania avoid economic meltdown at the height of the financial crisis.
“I don’t feel any joy that the motion failed, I only feel a huge responsibility,” Mr Boc said after the vote.
“These measures are unpopular, but they are the only solution at this point. I know how difficult this is for the people and I hope to make these measures as temporary as possible.”
Officials have said they hope to restore previous wage and benefit levels as early as next year, once the state budget is better balanced and almost 200,000 public employees have been sacked or given early retirement.
Unions had hoped that a million workers would strike yesterday to show their opposition to the cutbacks and put pressure on the government to scrap them.
The national turnout was disappointing for union bosses, however, and only a few thousand people rallied in Bucharest on a day of searing heat.
“No other country going through a crisis has made such cuts. They cut by 5 per cent, but they didn’t touch the pensions,” complained retiree Ioana Cuzmici (75).
Social Democrat leader Victor Ponta criticised the MPs who scuppered the no-confidence motion.
“I’m very disappointed and upset because eight lawmakers held the lives of millions of Romanians in their hands,” he said.
“We’ll attack this law at the constitutional court because I think people need hope and the court judges should give it to them.”
