Government given two-month grace period

The Government has been given a 60-day grace period to implement its austerity measures, in the context where at least 70,000 public sector workers have to go home by the end of the year.

The Government reshuffle was the main topic of discussion at the Sunday meeting in Snagov that brought together PDL MPs, ministers of the Cabinet, and President Traian Basescu, but nothing will happen at least until the 1st of September, with the President opposed to such a move at this time. Talks were not public, but deputy Valeriu Tabara was quoted by Mediafax as saying that the Government had been granted a 60-day grace period, during which time there will be no reshuffle talks, with all ministers set to work on the restructuring programme. "We agreed not to talk discuss the reshuffle until the 1st of September. There are more important issues than the cabinet reshuffle. President Basescu told us to trust him again, i.e. go through with the restructuring.

The remaining two months will see ministries and government agencies operate cost cuts and personnel cuts. Last week Prime Minister Emil Boc announced 20% cuts in spending in public institutions, with ministers expected to come up with new plans to cut personnel by 25% in ministries this week.