Romanian President Traian Basescu said Friday, during a visit in Mangalia, that he supports the fiscal strategy adopted by the Government, stating that if Romania will remain a country that pays salaries and pensions of loans, then "we'll go bankrupt", according to Mediafax newswire.

“For pensions we borrow EUR 3.5 billion this year, and for salaries the difference to EUR 4.8 billion. We can not remain in the position of a country that pays public institutions employees from loans, because we'll go bankrupt”, said the President, quoted by Mediafax. “I support the Government's fiscal strategy because I realize we don’t have another choice”, he added.

According to the fiscal strategy released by the Romanian Government, the increase of certain pensions will be blocked until 2014, pensions scheduled by the law to be applied next year, according to Mediafax. Also, Romania’s public sector employees will receive no vacation, gifts or meal vouchers until 2014, no bonuses until 2013 and will be rewarded for overtime only with free hours.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Romanian presidency)