Raising public wages to the level before 2010 austerity cuts would reduce the pension fund’s structural deficit, highlighted the president.
Basescu said Wednesday in an address to Parliament the ruling coalition and Government have the duty to restore public wages to the level before austerity cuts, as of June 1.
Two days prior, Prime Minister Mihai Razvan Ungureanu said the government is looking at ways to reduce healthcare contributions by 3% to 5%, should the economic situation allow it.
After a 25% reduction of salaries in 2010, public sector employees received a 15% pay increase last year. Right now, public sector wages would need another 16% increase to return to initial levels.
Finance Minister Bogdan Dragoi said Friday a 16% increase in public sector wages starting June would have an impact of 2 billion lei (EUR459 million) per year.
In addition, according to Dragoi, a five percentage point reduction in the social security contributions would mean a budget effort of RON2.3 billion in the last seven months of the year. (EUR1=RON4.3545)