Romanian Pres Says Hungarian Post-Salary Hike Budget Problems Are Something Else

"Romania is not in the same situation Hungary keeps presenting," Basescu said in the meeting of the presidential committee on the analysis and development of policies in public health. The head of state added Hungary took out commercial loans to build “C rating highways in public-private partnership.”

 

He explained that "some of Hungary’s budget currently goes on the payment of these loans," while "Romania is not in the same situation."

 

"We cannot see the Romanian and Hungarian budgets as equal," Basescu said.

 

Hungarian Prime Minister Ferenc Gyurcsany presented for Romanian media, in the joint Romanian-Hungarian Government meeting held last Tuesday, the problems seen by the Budapest Government after 2000-2002, when doctor and teacher salaries were increased by 50-70%, and warned that such measures impose high budget costs, which later need to be discounted.

 

"If you ask me how this was possible, my answer is very simple: in 2000-2002, the Government began spending a great deal and salaries in the public sector began soaring. Everyone loved it, there was some extreme support after these measures, the Government’s popularity skyrocketed, but we had to realize that big spending will sooner or later bring a big tab. Like in other countries, some of the parties suggested salaries should not be boosted to such a degree, because we would all pay more for social security, and at the end of the day you realize you are not making the state stronger," Gyurcsany told Romanian media.