Posted by: mbconsulting | May 7, 2010

Hard talks with Romanian President Mr.Basescu

Yesterday, May 6th, 2010, during the evening, the Romanian President, Mr. Basescu,  announced some of the most difficult decisions that ever were taken in Romania, after 1989:

1. the reduction of the jobs in the public sector – around 100,000 jobs less;

2. the reduction with 25%  of the salaries in the public sector;

3. the reduction with 15% of the pensions – around 4 million persons affected;

4. the reduction with 15%of the unemployment subvention – around 800,00 persons affected;

5. improve efficiency and efficacy of the programs for social security by a better coordination in order to avoid duplications and “redundant” payment.

During his announcement for more than twice the President stopped, seemed that he could not breath. It was a really hard speech.

The last speech was in fact a program declaration, a political and doctrinaire speech because placed President Basescu near by his party PDL. Mr. Basescu is now clearly defined as a right wing politician, with a clear message and a clear program.

It was wrong? It was good? I do not know, but it was necessary.

Too many confusions and hesitations were recorded by Romanian government lead by Mr. Boc. Not a single piece of legislation  implemented and coordinated straight by this government.Confusion and confusion, up and down, left and right, yes and no, no and yes, until the monitoring visit from IMF came and put all on table. There were actions agreed with IMF and did not implement until now and this affected the economic stability, bring no result in restructuring the economy and in making  it stable and predictable.

The economic measures mainly affect the persons that did not vote the President during his election organised in December 2009 or his party – PDL – in  2008.

During his speech,  Mr. Basescu strongly hits:

– public sector, too big in a economy that is reducing its activity,

– pensioners, the electors that mainly belong to PSD,

– unemployed persons and social assisted persons, also electors abdicated to PSD.

To whom is Basescu’s program supporting:

  • private sector and middle class, it’s my point of view.

Why did not present the program Mr. Boc- the Romanian Prime-Minister?

  • Because he did not perform a good job during the last 4 months (he declared at the beginning of 2010 that 200,000- 250,000 jobs from public sector will be reduced) and his incapacity affected the IMF agreement.
  • I also assume that  Mr. Boc was not able to assume such an unpopular program, and more than this, he does not fully agree with it. To be clear: if Mr. Boc wants to remain Prime-Minister he will be obliqued to implement it, otherwise he is leaving the Romanian government. There is only one way for Mr. Boc: perform or go! No time left for him or his government!
  • It was a way to protect the image of Mr. Boc that is preparing in less than 1 month for a Congress in PDL where he is preparing to be again elected as President of PDL. Good luck, but there are not good signs for Mr. Boc and his team.

Where is need for more support and actions?

  • in the fighting against corruption and bireaucracy – old themes with with few results ( I did not want to say: “with almost no results” – keep thinking pozitive);
  • in initiating programs to stimulate the economic renewal and innovations, especially for SMEs, in order to increase job creation at the level of small communities;
  • in initiating large investment projects –  private-public partnership- almost necessary to have a better infrastructure for transport, for health care system, in energy  and telecommunications, for protecting the environment.

Now, as a simple citizen of this country, I am curios what will be the reaction of my neighborers as they are almost all pensioners, but luckily almost all have family members, employed in private sector, around them that support them day by day.

Will be pensioners resigned or furios, would they understand or not the real situation? The first reactions: no comment, no word, nothing. Only a great ocean of silent.

I do not expect that public servants will keep their voice at a low level. But I do not care if they will accept or not the reform. It was time for changes and reform. The show must go on!

I am only concern about the ocean of silent…

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