Outcry as Financial Situation Worsens

The protest a few days ago was not the end of the financial crisis here. The good news is that the government was able to get another loan from the IMF. The bad news is that the terms of the agreement required the government to make drastic budget cuts. Yesterday the government announced that drastic cuts in all of its expenditures. It also continues to hold firm on the wage and pension cuts. While these may seem like necessary austerity measures, the workers have good reason to protest. In contrast with countries like Grease, where the government salary is around 2,500 Euro per month, Romanian workers currently make only 700 Lei. This is barely enough to cover the cost of living in Romania-- if that. Things are made more complicated by the retirement pensions. “ It’s not right.” said Ion, one of the Embassy drivers. He told me that during Communist times, workers gave 80% of their salaries to the pension plan, and thus were not able to save on their own. The cost of living problem will no doubt be exacerbated by inflation. The government has started running the printing presses at full capacity to stay solvent in the short term. Cuts in other areas of the government have various ministers up in arms. Protesting in the country continued yesterday. The news today reads that there is general outcry.