Financial Situation Leads to Tensions in Bucharest

Before arriving here I was following the financial situation in Greece. Romania is apparently facing a similar budget crisis. The government may have to cut its workers salaries, To balance the budget. Today, the Placa Victorii, Bucharest’s main square, was packed with protesters for the union of government workers. They were protesting a government proposal to cut the salaries of current employees by 20% and retirement pensions by 15%. This is not the first strike of this type. Strikes for these reasons have apparently been common lately. While the demonstration today remained peaceful, my co-workers said that many in the recent past have turned violent. By the end of the day the graphics on the television in the office read “ the government takes responsibility”, as it appeared to back off on its plans to cut the budget. This however does not solve it’s problems, apparently the country has maxed out its credit with international organizations such as the IMF, and now has little recourse but to simply print money, thus spurring inflation, in order to pay its debts. Still this puts the country in a better position that its Euro-using counterparts Greece, Spain, and Portugal, which do not have the authority to increase the supply of the official EU currency. While Romania’s financial situation may look bleak, it is fortunate that they are not on the Euro.