PSD and PNL leaders have convened to discuss the budget expenses and the increase of the minimum wage amid discontent of the Liberals, who do not agree with the wage hike enforcement from July 1.
According to sources in mass media, the Liberals asked Prime Minister Marcel Ciolacu to postpone the decision regarding the increase of the minimum wage after the local and EP elections. The Liberals argue that there is a difference of at least 10% between budget receipts and spending, and after the June 9 election, action must be taken in this regard.
The Minister of Finance, Marcel Boloș, declared on Monday that Romania has an excessive deficit and recommended the institutions to be careful with public funds.
“Our country has an excessive deficit and according to the new rules of economic governance we have to start a new procedure… It is the personnel expenses that were expected to have a greater dynamic during this period of time and we all know the measures taken in a legitimate way for people in terms of salary increases and also on the material and services expenditure, the health component, because that is where the medicine expenditure comes in. Also, they registered a rather sharp dynamic, and in this context, the measures related to possible constraints on the expenditure side are to be taken into account for the next period”, declared Boloș.
Prime Minister Marcel Ciolacu said that he does not accept that the Government’s activity “be decided in a political coalition, because we are returning to what was happening during the PNL-USR”.
“It’s a decision made on December 15, 2023, in the coalition, by all of us, that the minimum wage is 3,300 from January 1 and then to 3,700 lei from July 1. I don’t remember until the discussions between the Government and employers, unions, I don’t remember that there was any other decision. Regarding the non-taxable 200 lei, I want to inform you that it is a temporary law that ends on December 31. Today, at 3 p.m., I call Mr. Boloș. Fiscal policy in a normal state is made by the Minister of Finance and the Government,” stated Ciolacu.
Prime Minister also replied to the Minister of Finance, saying that it was foreseeable that the expenses would increase. “We don’t have any increase in spending, in the last month we had spending of 70 billion. Folks, we moved the pension payment date, 0.5% of GDP. What you want? Shall I tell you it’s a catastrophe? It was something predictable that expenses would increase, since we moved the pensions so that people would receive their pensions before Easter,” Ciolacu said.
The first signs dissatisfaction in the Coalition appeared last week, when Prime Minister Marcel Ciolacu announced, after the Tripartite Council, that from July 1, the minimum wage will increase to 3,700 gross lei. “From July 1, the minimum wage will increase to 3,700 lei gross. At the same time, we will maintain until the end of the year the facility granted to employers regarding the 200 lei exempt from taxes. We are in the right direction towards the implementation of the European minimum wage”, the prime minister announced in a post on Facebook.
The Liberals requested a meeting of the Coalition, but the prime minister cited his busy schedule and did not comply with their request.
Asked if he is bothered that he was not consulted by Prime Minister Ciolacu before making this announcement, PNL leader Nicolae Ciucă replied, according to Euronews: “It’s not about me being bothered, it’s about the attitude and respect that we have it towards each other and, until this moment, we have had an approach as honest as possible in the relationship with the prime minister, in the relationship with our coalition partners and we will continue to have it because, beyond the annoyance or pride of each of for us, what is important is what we do for people”.
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