Japan, Romania

The Romanian government has signed a loan agreement with the International Monetary Fund and European Union that will mean substantial cuts in public spending, cuts in public sector jobs and a freeze on pay. Our regional officer in Romania reports that the IMF has asked the Romanian government to freeze the public sector pay bill and allocate the additional income exclusively to investments. Over the next four years, the pay bill, which has more than doubled in the last three years, must be gradually reduced from 8% to 5% of GDP. The IMF requires that the cut in the pay bill is proportional to

Unions across the public sector have warned the government of the possibility of all-out strike action unless it negotiates a deal over planned changes to pay and cuts in jobs. The government is responding to demands from the International Monetary Fund to reduce public spending and reform public sector pay as part of a loan package that was also negotiated with the European Union. The Sed Lex civil service union oragnised a demonstration outside parliament on 16 September and is gearing up for a public sector wide strike on 5 October. [Read more at > Sed Lex (RO)->http://www.sedlex.ro/main

The government has announced that it wants to make deep cuts in public spending in 2011 to avoid having to call on the International Monetary Fund for further loans. Public sector pay could be cut by 25% and pensions by 15%. Unions and opposition parties are planning protests and the Sex Lex civil service federation is consulting members over strike action. [Read more at > Sed Lex (RO)->http://www.sedlex.ro/main/noutati.php?section=1] [And at > SETimes (EN)->http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2010/05/11/feature-01] [Read more at > Irish Times (EN)->http

Public sector trade unions were part of a major demonstration outside parliament on 27 October in support of a coalition of MPs who were attempting to win a vote of no confidence against the government. In the end the opposition was 19 votes short of the required majority. Trade unions said they would continue their campaign against the austerity measures with a four-hour general strike planned for 3 November, supported by the five trade union confederations. [Read more at > news website (EN)->http://www.nineoclock.ro/index.php?issue=4799&page=detalii&categorie=politics&id=20101029-512650]