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Romanian PM: Recent Wage Hikes To Be Annihilated By Inflation, Leu Depreciation

Romanian Prime Minister Calin Tariceanu said Tuesday that wage hikes will be “annihilated” by a rise in inflation and a depreciation of the national currency, leading to a major economic crisis.
Romanian PM: Recent Wage Hikes To Be Annihilated By Inflation, Leu Depreciation
28 oct. 2008, 12:27,

"I warn that these increases will be immediately annihilated by a return of inflation on upward trend and by the depreciation of the Romanian currency. In other words, what is given today will disappear in a few months and we risk slipping into a major economic crisis,” Tariceanu said.

The Prime Minister reiterated that he would continue to stand against the wage hikes, which are not sustainable from the point of view of the economy.

“I stress out that as I long as I am head of the government, I will not accept such measures that can destroy everything that has been built over the last ten years," Tariceanu said.

Romanian President Traian Basescu on Friday passed a law increasing teachers’ wages by 50%, despite the government’s warning that the move would jeopardize economic stability.