Romanian PM Says Govt Did Right Implementing Austerity Measures

"I understand why people are unhappy and I cannot blame them but I can tell them the Government has done exactly what it needed to do to limit the effects of the crisis and get the country out of recession," Boc said, adding Romania cannot emerge from recession with populist measures, such as those proposed by the opposition, that would make matters worse.

The prime minister also said the economy is showing signs of recovery and Romania could return to economic growth next year but only if it doesn't take any "steps back".

Over 20,000 thousand people are expected to reach the Parliament Palace, where lawmakers are to vote on the opposition's no-confidence motion, after they demonstrated outside the Government's building for an hour. Protesters marching up to the Parliament are accompanied by opposition leader Victor Ponta and other social democrats.

Union leaders have said they expect as many as 100,000 to join the protest over the Government's austerity measures. Traffic in the Romanian capital is restricted in the demonstration areas.

Romania has implemented harsh cost-cutting measures this summer to meet the demands of a EUR20 billion IMF-led international loan agreed last year. The measures, which have sparked mounting social unrest, include a 25% cut in public salaries, a controversial pension reform, public sector layoffs and tax raises.

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