Jeffrey Franks, the IMF chief of mission, declared on Wednesday that the reform of pensions is essential to ensure the stability of the fiscal system and it is essential for authorities to implement the unique salary law. The both are due to be approved by the Parliament in September, Franks said. Other reforms aimed: in the labor sector and the social assistance sector. Franks said that there were no talks with the government for a new agreement, and underlined that such talks are premature.
The measures adopted so far by the government, together with an improved collection of revenues and limitation of spending should be enough to keep the budgetary deficit below 6.7% in 2010. If the measures are continued, Romania should be in a better position to reach the deficit objectives in 2011 and 2012.
The IMF representative said that growth stimulation policies dhould not include massive governmental subsidies. The meeting with the IMF board is scheduled for the end of September.