Romania has to pay compensations worth RON 10 billion (some EUR 2.24 billion) to state employees, based on court decisions, after cutting salaries by 25 percent, Romanian Prime Minister Victor Ponta said on Romania TV.

From the total RON 10 billion, some RON 2 billion (EUR 449 million) is to be paid this year, according to Ponta.

Also, the Minister for Budget Liviu Voinea said that paying compensations to state employees, based on court decisions, made it impossible to increase salaries in the state system.

Irina Popescu, irina.popescu@romania-insider.com