Austerity measures to continue in 2011- more state clerks laid off, possibly 10% salary increase next year

The austerity measures taken by the Romanian government, which were initially announced to cover only 2010, will have to be kept next year so that the country can achieve the targets it has agreed with the International Monetary Fund (IMF). Prime Minister Emil Boc said some of the restructuring in the state system will have to be continued next year too, so that eventually salaries in the state system will grow back, but by only 10 percent. The Romanian government has cut the state clerks' salaries by 25 percent this year, to reduce budget spending and thus the budget deficit. The letter of intention to the IMF mentions 15,000 state clerks which should be laid off in 2011, but the Romanian PM didn't give any exact amount. Meanwhile, the Romanian president Traian Basescu has said the state has issued the pink slips for as many as 74,000 people in the budget system, which will not be enough to reform the system. In total, 1.37 million people work for the state. Those who will be laid off should be included in a re-qualification program, which should be funded with EUR 3.2 billion from the European Union. “If we don't continue with the austerity measures in 2011, we won't put Romanian back on track” said Traian Basescu in a TV show yesterday evening.