The Romanian government on Wednesday survived a vote of no confidence that was submitted to parliament...
Romania Governmentt Survives No-Confidence Vote
The Romanian government on Wednesday survived a vote of no confidence that was submitted to parliament by the main opposition parties over the ruling coalition’s “poor economic results.” The opposition National Liberal Party and Democratic Union of Hungarians in Romania said the government had failed to take adequate measures to shield the country from an unprecedented economic downturn.
The government is made up of a coalition between the center-right Democratic Liberal Party and leftist Social Democratic Party. In late March, Romania reached an agreement with major international lenders for a 20-billion-euro (US$27 billion) loan designed to finance the country’s budget and current-account deficits
U.S., Romania Signed Bilateral Agreements
The U.S. and Romania signed two bilateral agreements for cooperation on fighting organized crime last Friday, covering legal assistance and extradition. The new extradition treaty will replace the existing Extradition Convention signed between the two countries in 1924.
Romania Salaries Climb 17.6 Percent
Romanian average wages climbed 17.6 percent on the year in March and rose 3.2 percent compared to the month before, according to a National Statistics Board report last Thursday. The government is struggling to control inflation and is concerned about fast wage growth. The International Monetary Fund estimates the rate of inflation in Romania will slow down from 7.8 percent in 2008 to 5.9 percent in 2009 and 3.9 percent in 2010.
Romania to Face Sharp Slowdown in 2009
With European demand slowing and global cash shortages likely to curb investment, most economists predict Romania will face a sharp slowdown in 2009 from last year’s expansion. The International Monetary Fund predicts a 4.1 percent contraction in the country’s real growth of the gross domestic product this year following its 7.1 percent growth in 2008.
