“The decision was made yesterday and will be applied because it is in line with the negotiation we had with the IMF,” said Ponta.
Romanian authorities will raise public wages by 8% as of June 1.
Speaking at the wrap-up of the IMF’s fifth review mission in Bucharest Wednesday morning, Franks said a more relaxed deficit target should allow Romania to finance part of a 15% wage restoration in the public sector but the money will not be enough for a total restoration of the public wages, because the government also decided to refund a series of social security contributions in the public pension sector.
Wages in the public sector were reduced by 25% in July 2010, as part of a government austerity package aimed to cut spending and bolster revenue. The authorities in Bucharest allowed a 15% wage restoration last year and announced a further 8% salary bump as of June 2012.
The remaining 7% will be restored in 2013, Franks said.