What the newspapers say: December 22, 2010 

While the salaries of the budgetary personnel dropped this year, the state will allocate in 2011 more money for the priests’ salaries according to the 2011 law on budget. Find out who are the winners and the losers of the 2011 budget. One newspaper points to the negative effects of Romania will not join Schengen like discouraging foreign investors and a bad overall image on the country.

While the salaries of budgetary personnel dropped this year, the state will allocate in 2011 more money for the salaries of priests. According to the 2011 law on budget, the contribution of the state to the priests will increase by 9.2% next year by 59.2 million euro.

Government representatives claim that the difference pertains to modifications incurred in 2010 and that the sum is not an increase. On the other hand, the law on budget reveals that the state’s contribution to salaries of the non-clerical personnel – estimated at 20,000 people will increase in 2011 by 30%.

In Romania, there are about 15,000 Orthodox priests and the state financially sustains 60% of their basic salaries and in some cases even 80% for poor parochial places.

Romania libera reads about the winners and losers of the 2011 budget, which sectors will have more money allocated and which less. Next year the state will pay 22% more on interest rates than in 2010.

To get more revenues, the state will cut subsidies by 10%, spending with social insurance by 23% and increased revenues of VAT by 18%. Even though criticized by everybody, the budget passed in the Parliament.

Romania needs to get more money from the EU funds and every effort, any spending cut or overestimated revenues for next year seem to be pardonable, the newspaper reads.

According to the project voted on Monday, Romania will allocate for co-financing 13.69 billion lei which is 3.25 billion euro.

Evenimentul Zilei reads that two of the biggest consequences of Romania not joining Schengen will be the discouraging of foreign investors and the bad image Romania will be stamped with.

The newspaper refers to the conclusions of the German and French Interior ministers who do not think the Romania and Bulgaria are ready to join Schengen. The two demand to the European Commission to postpone Romania and Bulgaria’s plans to join Schengen.

Some analysts contacted by the newspaper explained the impact of a rejection. Journalist Andrei Postelnicu declared that the biggest problem is the signal given by the decision: investors who know Romania so well will soon realize that this decision is a vote against Romania and the government’s lack of capacity to enforce its reforms.

Transparency International Romania director Victor Alistar declared that the country will lose economic relations and its reputation.