Austerity is on the cards for Romanian MPs, as their monthly housing stipend will drop, after the number of MPs went up by 20 percent in this election term, but the budget stayed the same. An MP's monthly stipend for housing will drop from RON 7,400 (some EUR 1,650) to RON 4,000 – or EUR 900. Each MP from outside Bucharest can choose whether to rent an apartment or stay in a hotel using this budget.

The Parliament will decide next week whether it will keep the budget at this lower level, as in theory the Parliament could decide on a higher budget when it votes on the Government's budget, which also includes MP expenses. The PM Victor Ponta, who is also the head of the Social Democratic Party (PSD), with the strongest presence in the Parliament, has already said that MPs will have to make do with a lower budget.

After the cut was announced, the Federation of Tourism Employers in Romania stated that a RON 4,000 budget a month, or even less, could cover hotel accommodation in Bucharest, at four star levels. The same budget could also cover a three to four – roomed apartment in downtown Bucharest.

editor@romania-insider.com

(photo source: sxc.hu)