What the newspapers say: May 9, 2011

In an interview for a daily newspaper, PM Boc talks about all current political and economic themes. Other newspapers read about what Romania signed up for the next two years with the IMF agreement. Prices of food prices will increase by 10-12% in the upcoming months. Over 50 persons wanted in Schengen states were discovered this week in Romania. Tourism might be blocked in the Danube Delta.

In an interview for Evenimentul Zilei, Prime Minister Emil Boc claims that the implementation of the new Labour code pulled out of slavery 78,000 Romanians who were working on the black market and for which employees decided to create labour contracts fearing sanctions in just four days.

Boc said that the most important conclusion of IMF talks is that Romania has every chance to pull out of recession as a first step from pulling out of the crisis. He said that the toughest period has passed and that a continuation of reform is necessary to rush economic growth. Boc said that the state cannot offer salary, pensions and other social benefits without a real economic ground. If things go on the track we sketched, Boc said, budgetary personnel will recover salary decreases in the end of 2011.

Romania libera reads about the agreement between Romanian authorities and IMF representatives on the new precautionary agreement for the next two years. The content of the agreement will be released later today. However, top priorities are state owned companies that register great losses.

The list of the IMF contains 20 such companies that register debts and according to sources quoted by Mediafax, IMF specifically requested radical measures for the companies. However, the state does not want to sell its majority pack in any of the companies and therefore will sell just a minority of shares.

The new agreement with the IMF includes the elimination of bonuses and introduction of performance based payments for employees in the financial system. Other stipulations: stability of the fiscal legislation, state owned companies will report to the Finance ministry, the reform of the education and health systems, decrease of inflation to 4% in 2011-2012, decrease of debts incurred by state owned companies and relaunch of the railway traffic to the detriment of the road traffic.

Gandul reads on Monday that prices of food products will increase in the upcoming 2-3 months by up to 10-12%. Lately, prices of meat increased by about 20% and prices will increase by another 10-12% for processed food. Romalimenta President Sorin Minea said that some food products have already been increased and others will also increase in a few months.

He said that there is nothing he can do about the increase, as long as the majority of raw materials are imported from the EU. He said that prices for vegetables and fruits might stagnate this season like the price of bread. Gandul reads that over 50 persons wanted for various reasons in Schengen states were discovered this week in Romania, police representatives said.

According to quoted sources, in May 1-6, Romanian police officers traced 54 people that are signaled in the Schengen IT system. Therefore, the Romanians executed seven European arrest mandates and found two persons who were reported missing.

Another 27 persons were found who were wanted for judicial procedures. Romanian police officers also found in Romania 32 cars wanted to be confiscated or used as evidence in penal procedures by other Schengen state members.

Romania libera reads that a draft law on naval traffic in the Danube Delta stirs up controversy and threatens to decrease tourism.

Environment ministry plans to forbid access of boats bigger engnes created a real scandal in the area as tourist operators complain that this measure will affect tourism in the area. Environment minister Borberly recently release a project of the government that limits the traffic of bigger boat engines to the main canals as a measure to protect biodiversity and dams affected.

However, the Danube governor Gribore Baboianu said that the rules will not be adopted in their form and that an exception will be included for those hotels on boats.