Romania PM Says Govt, Unions Fail To Reach Common Ground, Talks Will Continue

He stressed, however, that unionists' proposals will only be accepted if grounded, adding that, at the moment, Government officials and unionists have different standpoints and views with respect to cutting expenditures in the public sector.

He pointed out that Government officials and unionists have totally different views as regards increasing taxes, a measure supposedly requested by unionists, and keeping taxes at current levels, but reducing budget spending, a measure upheld by the Government.

According to Boc, Romania would be heading for economic disaster if it did not take drastic spending cut measures.

The Government has pledged to drastically cut public spending to tighten the country's budget deficit at 6.8% of GDP, in order for the International Monetary Fund and other international institutions to release a new installment of a EUR20 billion rescue loan agreed last year.

Spending cut announcements have sparked waves of social unrest and mounting tension and tens of thousands of people staged the biggest rally of the past 19 years outside the government building Wednesday, trying to pressure authorities' into watering down their austerity plan that entails wage cuts of 25% and pension and social welfare cuts of 15%.

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