More on the Financial Crisis

Protests resumed in front of the Palace of Parliament Yesterday. While the opposition television station tried to make it look as if they were breaking down the gate to the palace’s grounds, demonstrators remained non-violent. The protest took place as the parliament voted on a motion of ‘no confidence in government’ brought on by the proposed austerity measures needed to obtain a loan from the IMF. The vote was defeated by a narrow majority, but was met by shouts of protest from public spectators in the parliament’s viewing chambers. The results mean that Prime Minister Emil Boc has a mandate to legislate harsh salary, pension, and across the board budget cuts. While the current government remains in power, statistics show that less than 1/3 of the population supports Boc’s government. The coalition stands to lose when elections are next held. In my opinion, they deserve to. Their handling of the budget crisis has been first rate, considering the circumstances. However, it is important to remember that the government's over-spending and mismanagement caused the current crisis. The decision to cut the salaries and pension will only have great impact on one segment of the population. This minimizes the negative effect on the economy as a whole, when compared with other options such as raising taxes to pay down the debt. The government has chosen the lesser of two necessary evils, but neither would be required if they had spent within the country's means.