Prime Minister Emil Boc last evening painted a bleak picture ofa Romania that had hiked taxes instead of cutting public spendingby around two billion euros by the end of the year.
The Premier last evening pledged the Government's responsibilityfor the austerity laws, which provide for a 25% wage cut and a 15%pension cut for the months left until the end of the year.
PSD (Social Democratic Party) responded by introducing a motionof censure that will be supported by PNL (National LiberalParty).
In his responsibility assumption speech, the head of the Cabinetsaid if tax hikes had been chosen over pension and wage cuts,50,000 economic operators would have been forced to shut down inthe second half of 2010 alone, inflation would have been close to10%, and foreign direct investments would have plummeted.
If the austerity measures are not implemented, the IMFarrangement will fall apart, and Romania will default because itwill not be able to secure funding either from foreign or domesticmarkets.
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