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30. 01. 12. - 16:00

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30. 01. 12. - 16:00

IMF chief says economic growth not enough for wage rises

Romanian Times

Jeffrey Franks, chief of the International Monetary Fund (IMF) mission to Romania, said today (Mon) in Bucharest that if the wages rose, employers would hire fewer people.

Jeffrey Franks said: "Economic growth is back, there were four quarters of economic growth, it seems the last quarter in 2011 will have a 2.5 per cent growth, more than I had estimated. We expect a positive economic growth in 2012 as well."

"The bad news is that this growth is insufficient to increase the life standard for Romanians. An increase of 1.5 per cent or 2.5 per cent is better than nothing, but it is not enough. Supplementary growth is needed."

Prime Minister Emil Boc is going to negotiate with the International Monetary Fund (IMF) mission on raising pensions and salaries.

The ruling coalition decided on Monday to give a mandate to Emil Boc for the negotiations, for salaries and pensions to rise starting with April.

The announcement was made by the Democratic Liberal leader Sorin Frunzaverde.

The mission of the International Monetary Fund (IMF) came to Bucharest in the period 25 January - 6 February, to evaluate the stand-by agreement with the Eastern European country.

The mission is led by Jeffrey Franks and it will be evaluating Romania's progress with the European Commission and World Bank teams.

Romanian authorities pinned down a stand-by agreement with international lenders, in March last year, for 3.5 billion Euros. But it has not used any of the money as yet, being a precautionary agreement.

Romania will not resort to the International Monetary Fund (IMF) money available in 2012 in order to secure its financing resources, Romanian IMF representative Mihai Tanasescu said recently.

Health minister considers taxing fast food and beer
The new Health Minister Vasile Cepoi said today (Thurs) that the next Health Care Law might include a new tax on fast food and beer, local press informs.

Romania wont ratify ACTA
Romania will not ratify the highly controversial (Anti-Counterfeiting Trade Agreement)ACTA until the agreement won't be altered as to comply with demands recently formulated by the European Court of Justice, the minister of Communication Dan Nica told a press conference today (Thurs).

Romania wont ratify ACTA
Romania will not ratify the highly controversial (Anti-Counterfeiting Trade Agreement)ACTA until the agreement won't be altered as to comply with demands recently formulated by the European Court of Justice, the minister of Communication Dan Nica told a press conference today (Thurs).

Government to introduce ‘Robin Hood’ tax on oil companies
Minister of Economy Daniel Chitoiu announced today (Weds) that the government is working on a piece of legislation on introducing a supplementary tax on the exceptional incomes of the oil companies that should be passed by the year end and implemented as of 2013.

Education Minister stepps down amid plagiarism accusations
Ioan Mang, the education minister appointed only two weeks ago together with the new cabinet of Social Liberal Union (USL) leader Victor Ponta, resigned Tuesday (yesterday) night.

Brancusi’s son doesn’t want his father remains to be moved to Romania
John Moore, the only child of sculpture Constantin Brancusi, reacted to Romania’s intention to repatriate the remains of his father, saying his last will was to be buried in Paris at Montparnasse, Libertatea newspaper informs today (Weds).

Romania back in recession, growth to resume in H2
Romania officially entered recession today, following the figures published by the National Statistics Institute (NSI) that show a decrease of the GDP for two consecutive quarters (Q).

Police head sacked over underground boss runaway row
The head of the Romanian Police Liviu Popa (picture) was sacked today (Tues) by Home Affairs Minister Ioan Rus, the ministry informs.

UK Ambassador Harris says new Cabinet took right decisions so far
The UK Ambassaodr in Romania, Martin Harris says Victor Ponta’s new government got off on the right foot by making clear that its economic policy will continue to be framed within the programme agreed between Romania and the EU, World Bank, and IMF.

Carmen Sylvas x-rayed hand to be auctioned
A x-ray of the left hand of Romanian Queen Elisabeta will be auctioned in Bucharest by Artmark auction house, Libertatea newspaper informs today (Tue).