Market players have mixed opinions as to the effects of publicsector employees' salary cuts on the economy. For many theconsumption decline will be somewhere between 10 and 15%. Some saythis fall will be more dramatic than last year's, when the privatesector underwent an adjustment.
Alin Ursu, manager of Angelli Spumante & Aperitive, believesthe measures announced by the Government will lead to a majorconsumption decline after they are enforced. "Consumption will fallby at least 15%, and expensive products will be the most affected.The impact will be deeper compared with last year's redundancies inthe private sector because private sector employees turned to otherprofessions and found new jobs," Ursu says.
"The first five months were already slow in food retail and veryslow in durable goods retail, one could feel that people werescared. The implementation of austerity measures will be yetanother blow dealt to Romanians' purchasing power and I think thiswill deepen the market decline," said Gunter Grieb, chief executiveof discount store chain Profi, with 140 million euros in turnoverin 2009.
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