Romania's austerity measures go to Parliament

BUCHAREST, Romania — Hundreds of people protested outside Romania's parliament on Monday as the country's leader prepared to propose austerity measures that would cut public wages by one-fourth and pensions by 15 percent. Prime Minister Emil Boc has said the measures he will present to the lawmakers are needed to receive the next installment of a multibillion dollar loan from the International Monetary Fund and the European Union. In particular, Boc has said so-called "luxury pensions" that 200,000 retirees receive must be recalculated. The opposition Social Democrats and Liberals oppose the measures and have threatened to file a no-confidence motion to be voted on next week. They also have the support of about 500 people who gathered outside Parliament on Monday to oppose the austerity measures. The government has said about 125,000 public sector jobs need to be cut in 2011 to ease pressure on the state budget at a time of a deep recession. Romania has 1.36 million public workers in a population of about 22 million. Unemployment is currently at about 8 percent. The country took a 20-billion euro or $24.54-billion loan from the IMF, the EU, and the World Bank last year to pay state wages when its economy shrank by 7.1 percent. In May, President Traian Basescu announced sweeping cuts in state-paid wages, pensions, and benefits. The IMF said the country had to reduce public expenditure to keep its soaring budget deficit under control, but insisted the measure to cut public wages by one-fourth and pensions by 15 percent was decided by Romania's authorities. The country expects to have an installment of the IMF loan delayed, if those measures are not applied by the end of June. —AP