site.btaRomanian Prime Minister Meets Trade Unions to Discuss Budget Deficit Reduction Measures

Romanian Prime Minister Ilie Bolojan met with the country’s five largest trade union organizations to discuss the government’s proposed measures to reduce the budget deficit. The talks lasted an hour and a half and took place at the government building in Victoria Square, according to a press release received at BTA’s Bucharest Bureau on Thursday.

“We pointed out to the Prime Minister that the measures are aimed only at employees and pensioners,” said Bogdan Hossu, leader of the Cartel Alfa union, immediately after the meeting, quoted by Digi24. He added that without a fair distribution of efforts to tighten belts, there will be increasing social conflicts.

The Prime Minister, in turn, noted that the unions’ proposals would be analyzed and “to the extent possible, included in the package of government measures.” Another meeting with the trade unions is planned within the next two days.

On Wednesday, Prime Minister Bolojan announced new taxes and fees. These include an increase in value-added tax (VAT) with two rates, 11% and 21%, and a 10% rise in excise duty on alcohol, fuels and cigarettes. From January 1, an increase in the dividend tax from 10% to 16% is planned, and bank profits will also be subjected to additional taxation.

Even before the budget deficit reduction measures were adopted, trade unions opposed them and threatened protests and a general strike.