Representatives of the Social Democratic Party (PSD), part of the ruling coalition, are to hold informal discussions today with trade unions and federations of pensioners, prior to formal talks for a foreign loan, according to PSD President Mircea Geoana. Romania plans to access foreign financing as a shield against the global crisis, as the country’s economic growth is tumbling and the national currency is depreciating against the euro. Authorities are interested in borrowing funds from several international institutions, including the International Monetary Fund (IMF), the European Union (EU), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), or the World Bank. Before formal talks with such institutions begin, “a discussion with social partners is a must. We believe this is a fair and democratic measure which a leftist party must apply when crucial decisions regarding the country’s economy and social balance are made,” Geoana added.Labor Minister Marian Sarbu, also a member of the Social Democratic Party, said that, in the view of an IMF loan agreement, PSD is unwilling to resort to harsh measures as far as pensions, salaries and social assistance are concerned, but intends to find areas where “there has been excess,” such as the revenues of public servants. IMF would impose severe conditions on Romania in case of a stand-by agreement, including the freeze of pensions and public sector salaries.
