Cuts or no cuts? The authorities waver again

After President Basescu's shock announcement last Thursday regarding salary and pension cuts, the authorities tend to be sucked into endless talks with trade unions and with business owners' associations, unable to at least provide a clear explanation about progressive income cuts or enforcing additional taxes.
A "solidarity tax" for employees with high incomes in state-held companies, based on undecided criteria, prospective donations from ministers' and PMs' salaries, children's allowances cut based on unknown criteria, and other tax hikes and measures meant to prevent tax evasion included in a letter of intent to the IMF that the Government does not take responsibility for.
After a tense meeting with unions and business owners' associations, President Traian B`sescu yesterday concluded that the agreement reached with the IMF was renegotiable and that he expected the approval of the Economic and Social Council before the Government would adopt the measures.