International rating agencies, likes Moody's and Fitch claim that the government's austerity measures, to cut salaries and pensions are vital to re-establish the trust in economy and will ensure that the IMF pays up tHe next instalment, one newspaper reads on Tuesday. Elsewhere in the news, Finance minister Vladescu announced that citizens who own more than one house will pay higher taxes to the state. Media mogul Dan Diaconescu is accused by anti graft prosecutors of acts of threat and blackmail.
Rating agencies, Moody's and Fitch claim that the government's austerity measures are vital to re-establish trust in the economy and ensure that the IMF and the EU will deliver the next installments, Gandul reads. The risks of the restructure are, accoridng to Fitch analysts, a slower economic launch and more budgetary personnel who cannot pay up their dues to the banks.
Fitch director Douglas Renwick said that even though there are risks in terms of their implementation, the restructure of the public sector is an important step to re-establish fiscal sustainability.
He explained that an inefficient fiscal reform, or a turn from the IMF and the EU agreements will produce negative effects to the economy which will be worse. In the same time, Moody's claims that banks will feel the austerity measures as well, as there will be many budgetary personnel who will not pay up credits.
A cut in budgetary salaries will diminish the worth of the GDP spending but the government needs to increase efficiency of the public sector to allow higher salaries and an administration with fewer employes, a Moody's analyst, Kenneth Orchard said.
Elsewhere in the news, Finance minister Vladescu announced that those who own more than one household will have to pay higher taxes to the state. Vladescu himself own
