IMF: Romania's new Government should first do its homework then take measures

The wage growth in Romania’s public sector needs to be part of a comprehensive package of reform measures in this sector, said Guillermo Tolosa, International Monetary Fund (IMF) representative for Romania and Bulgaria. The financing source for the wage growth has to be clearly specified, he added. “The expectations from the new Government are that it will begin to take decisions in a completely different manner,” Tolosa said, reports local Agerpres. The Government should first do its homework and then take the measures, and not the other way around, according to the IMF representative. The new Government’s priority should be maintaining the financial macro stability. Romania is in the best macroeconomic position in the last seven years, Tolosa said. Steven Van Groningen, president of Raiffeisen Bank, also said that the wage growth in Romania’s public sector could be supported by reducing staff, but the real problem was the administration’s weak capacity. The new Government announced that it would respect the measure adopted by the Parliament last week, which voted a 10% increase in all the wages in the public sector starting December 1. editor@romania-insider.com (photo source: gov.ro)