What the newspapers say: May 7, 2010
- Redactia Hotnews
„The Government lied”. Elsewhere in the news, Romanian Work Ministry stated minister Mihai Seitan had no clue about the cut in pensions before President Traian Basescu announced it. Last but not least, Romanian ex-diplomat Silviu Ionescu remains wanted internationally.
„The Government lied”, Romanian Central Bank (BNR) Governor Mugur Isarescu said, Romania Libera informs. If the public sector is not put through reform, Romanians can expect tough years, even with the economy recording positive figures and the Government lied when they said there was an alternative. An economic recovery is almost impossible in Romania this year and even if it happened, it would do more harm than good on a long term, and that’s because the plus would actually be a stagnation and because authorities have not yet decided how to get involved in the economy.
„I’m worried about the quality of the public debate, which insists on a social state with low incomes. This does not exist anywhere in the world”, BNR governor Mugur Isarescu declared. He stresses that it’s high time authorities decided if they wanted a social state or one with minimum economic involvement, otherwise Romania will stagnate, namely a very slow economic growth period, he believes.
In his opinion, reducing the budget deficit by accumulating debts towards the private sector or by cutting investments is a very bad idea. On the 37% of the GDP incomes, Isarescu says: „The right word is ‘lying’. It’s not about how much has been done, but how much is going to happen. (…) The budget deficit can fluctuate, but if you reach your targets by state debts, it will make the worst solution”.
He says one cannot go on talking about pensions when a family’s average income is lower is below the average pension. „We cannot talk about solidarity without taking into consideration the other party as well”, he added. According to him, the reform of the public sector should be the main priority. he says no recovery matters unless the public sector does better. „Major unbalances need to be dealt with, otherwise the growth is not healthy”, he says.
He stressed that 4 million employees cannot support 6 million people getting state benefits. Plus, due to he budget waste, BNR cannot encourage banks to start lending money. And because of the increase in taxes and the toughening of the economic context, the interest rates cannot be kept at a low level.
Romanian Work Ministry stated minister Mihai Seitan had no clue about the cut in pensions before President Traian Basescu announced it, Gandul informs. The decision to cut incomes, pensions and unemployment benefits was met in a small circle. The Work minister was excluded from it. According to his spokesperson said Seitan did not know it before the Government meeting.
„This wasn’t discussed during the IMF negotiations, to which the minister took part. Everything that was agreed was in broad lines. They talked about a global 25% reduction in the social spending, but without listing here, at least to our understanding, pensions and unemployment benefits. We need to be clarified tomorrow what the President wanted to say: whether the pension fund will drop by 15% or if all pensions are cut”, the spokesperson added.
Romanian ex-diplomat Silviu Ionescu remains wanted internationally, Evenimentul Zilei informs. This was the decision of the Bucharest Court of Appeal. The court rejected Ionescu’s request for the international mandate to be cancelled.
Silviu Ionescu was business attaché to Singapore, where he was involved in a hit-and-run accident in December last year, which led to the injuring of two and one death. Ionescu will appeal against the judges’ decision in the Supreme Court and CEDO. According to judicial sources, the ex-diplomat is not allowed to leave the country.