Romania Won’t Cut Wages In State-Owned Cos By 25% - Fin Min

The minister declined to give further details, adding the government is working on a draft law.

"We'll apply a different system in state-owned companies. You'll see the draft law, I can't say more now. The 25% cut in public sector wages won't be applied in state-owned companies," Vladescu said during a seminar discussing the labor market.

Romania's Government Sunday evening adopted two draft laws cutting public sector wages by one fourth and pensions and social welfare benefits by 15%, in a bid to tighten this year's budget deficit to 6.8% of GDP and meet the requirements of an IMF-led EUR20 billion rescue loan the country agreed last year.

The drafts have been submitted to Parliament and the Government will seek a confidence vote to adopt them, most likely next week.

The Romanian authorities' initial austerity plan also slashed the wages of employees in state-owned companies, a move unions have deemed illegal. Another plan was to force employees in state-owned companies to give part of their wages to a solidarity fund, but no concrete measures have been taken so far.

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