IMF's Jeffrey Franks: Minimum wage in Romania might increase this year

Jeffrey Franks (in picture, right), the head of the International Monetary Fund (IMF) delegation in Bucharest has recently said that the minimum wage in Romania could record a "calibrated growth" this year. However, he added that there is a risk of employers hiring less if wage costs increase in Romania. Jeffrey Franks compared Romania with “a ship that came out of the storm, made ​​some repairs, is in better condition, but it is threatened by another storm in the distance”. Romania is expected to record economic growth in 2012, but this will not cause an increase in the standard of living of the population, according to the IMF official. The Government cut public sector salaries and pensions in 2011, but protests over the decreasing revenues and the effects of the austerity measures in the country started only at the beginning of 2012. Disgruntled Romanians have continued protests in the capital city Bucharest for the last two weeks, despite the bad weather that has hit the country. Irina Popescu, irina.popescu@romania-insider.com