What the newspapers say: January 16, 2009

For the first time in the last years, the government plans to substantially reduce budgetary spending, one newspaper reads on Friday. Also in the spotlight, the Constitutional Court decided that the government’s ordinance to limit the accumulation of pensions and salaries is unconstitutional. Last but not least, Romanians abroad sent home money just as much foreign corporations in Romania invested.

Cotidianul reads about the government’s 2009 budget with budgetary revenues fixed at the 2008 levels and spending decreased by 2 per cents of GDP. For the first time in many years the government is planning to cut budgetary spending.

Sources within the government declared for the newspaper that the deficit is fixed at 2.5% of GDP and revenues are 31% while spending 33.5%. According to the budgetary revenues at December 30, published by the ministry of Finance, the state managed to gather up from the government revenues equivalent to 31% of GDP.

Thus, the state’s revenues will be fixed at the same level as the one registered last year. Regarding spending, things are even worse. According to estimations, budgetary spending for 2008 totaled to 35.5% of GDP. However, the two percent decrease in spending will have every chance of being taken from the education sector, the newspaper reads.

According to sources, the health sector might receive 3.95% while the education 4% compared to 6%, the official 2008 state’s budget law.

Also about the government, Evenimentul Zilei reads that the Constitutional Court decided that the government’s ordinance to interdict the accumulation of the pension and the salary is unconstitutional, because it breaches the right to work and the right to receive a pension.

The decision came only five days before the deadline when citizens in such situations were supposed to choose between the two. The government declared that it will promote a similar law project that will be discussed in the Parliament as soon as possible.

Thus, those targeted by the ordinance namely professors, doctors, maternal nurses are not compelled to choose between their salary or pension anymore. PM Emil Boc declared that the Constitutional Court rejected the ordinance on grounds that the government cannot interfere in such sectors.

Gandul reads that Romanians abroad sent home just as much as foreign corporations invested in Romania, which is 7.84 billion euro. The newspaper, quoting Romania’s National Bank statistics reads that even in hard times, Romanians managed to send home more than they did before the recession wave hit Europe, and in 2007 they send home ‘only’ 6.59 billion euro.

Economic analysts however fail to explain the dicrepancy especially that western economies were hit by the effects of the economic crisis. Economics professor Daniel Daianu declared that the money do not come only from Spain but that the negative effect will be felt this year.