





Romanian PM Tariceanu: We cannot afford electoral charity
As a consequence, salary growth would not exceed 11% this year, he said.
PM Tariceanu said Romania needed careful policies to keep the pace of growth reported over the past three years.
He said that authorities needed to keep into consideration the evolution of inflation and a balance between inflation and salary growth. He warned that unless a cautious salary policy was applied inflation was bound to grow.
He said he noted a frenzy of spending at local administration level at a time when the government tries to prevent higher budget spending despite potential higher incomes. He said the budget deficit must fall in line with the Maastricht criteria and not exceed 3%.
For his part, BNR Governor Mugur Isarescu said an economic growth of 6% was targeted for 2008. He warned that salary growth should not exceed labor productivity growth because that would reflect on the national currency value.