Romania's finance minister said Thursday that 100,000 jobs in the public sector will be cut as recession-mired Romania makes budget cuts to meet the requirements of its bailout loan from the International Monetary Fund. Sebastian Vladescu made the announcement as Parliament debates for a fourth day this year's budget, which is crucial for unlocking a ¤1.5 billion (US $2.18 billion) instalment of an IMF loan.
He declined to say where the cuts would be made. After years of growth, Romania's economy went into a decline last year, shrinking eight percent. The country ran into financial trouble and was forced to seek outside help, and the IMF, the EU and World Bank put together a ¤20 billion package.
But the loan was frozen in October after the government was dismissed by Parliament in a no-confidence vote, leading to a period of instability which was resolved after President Traian Basescu was re-elected in December. Analysts say that the figure does not mean 100,000 people will lose their jobs. Vacant jobs will not be filled and people near retirement age will not be replaced.
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