Romanian labor minister Paul Pacuraru has announced that the minimum salary in 2008 was set at 500 RON - or 145 euro. Employers' unions have agreed with the threshold, while trade unions said they favored a re-evaluation of an amendment to rectify the 2008 budget.

Economy analyst Constantin Rudnitchi told HotNews.ro that the "Government decision is a compromise. As far as I remember, the Government first offered 480 RON, and trade unions demanded 540 RON."

For consumers, this is a good thing because it will lead to better salaries in Romania, he said. "But there is also a threat. It's obvious that the inflation targets for next year can be threatened. People earn more, spend more", and that leads to higher prices.

Summing it up, a salary boost "is good for employees but worrisome for the budget and inflation", Rudnitchi said. Romanian labor minister Paul Pacuraru has announced that the minimum salary in 2008 was set at 500 RON - or 145 euro. Employers' unions have agreed with the threshold, while trade unions said they favored a re-evaluation of an amendment to rectify the 2008 budget.

Economy analyst Constantin Rudnitchi told HotNews.ro that the "Government decision is a compromise. As far as I remember, the Government first offered 480 RON, and trade unions demanded 540 RON."

For consumers, this is a good thing because it will lead to better salaries in Romania, he said. "But there is also a threat. It's obvious that the inflation targets for next year can be threatened. People earn more, spend more", and that leads to higher prices.

Summing it up, a salary boost "is good for employees but worrisome for the budget and inflation", Rudnitchi said.