State plans to cut contributions to mandatory private pensions

The contributions to the mandatory private pension funds, which are currently of 2.5 percent of the salary in Romania, will be reduced to 0.5 percent of the salary, according to the general union of industry producers in Romania. Stefan Radeanu, the head of this union, said the Finance Minister Sebastian Vladescu (in picture) has announced employers' unions about this change, according to Mediafax newswire. The measure is needed to balance the pensions system in Romania and will be applied by the end of 2011, according to Vladescu. The employers' unions have met the labor Minister Mihai Seitan and Finance Minister Sebastian Valdescu to discuss the letter of intention to the International Monetary Fund.