It’s official: salaries not to increase by 50%

This is the most important of the anti-crisis measures proposed by the government during the negotiations with employers associations and trade unions, whose conclusions will be announced tomorrow. The current government requires €5-9 billion to cover all expenses for 2009, with a budget deficit focused on investments, according to Prime Minister Emil Boc on B1 TV station. “The social security budget presently needs some €1.1 billion from the state budget, The amount does not include the rise in the pension point to 45 percent of the average gross salary,” said Boc. Boc also commented on the negative estimates by the EEC regarding the budget deficit and the country’s economic growth in 2009, saying that these are based on the commitments of the former government. The EC foresees 7.5 percent budget deficit this year. The current government could also grant collaterals for investment loans of some €320 million. Furthermore, in order to create 50,000 jobs, the government could subsidize the social contributions of the employer who pays €233 per employee.