The middle class is on the brink of poverty. Elsewhere in the news, savings will be taxed in Romania. Last but not least, Rompetrol will pay a part of its debt to the Romanian state.
The middle class is on the brink of poverty, Adevarul reads, citing Forbes. The Romanian middle class, formed with great difficulty, could now fall to bits. The economic measures taken by the government and the quality of life heading down towards the lower limit of the social pyramid force the middle class to emigrate.
The 15% cut in pensions and 25% slash in salaries will have a great impact on Romania's middle class. The population's lower incomes attract a lower consumption and a drop in the activity in the private sector. Economy professor Mircea Cosea believes many SMEs will disappear. Plus, without interior support, small entrepreneurs will find it harder to survive in the European competition.
The child care benefit for mothers is adding to the negative impact. The economy and the middle class in general have grown on credit and consumption and crashed when the two stopped working. Approximately on million jobs were cut in the last two years and the unemployment currently reads 8.4%. The consumption dropped by 8.3% in 2009, after a year of a 6.1% growth.
The cut in salaries is affecting the education, health and administration, which are indispensable sectors in any society. Which leads to another important phenomenon: migration. Those leaving are usually part of Romania's public sector, usually doctors, teachers and professors. The Romanian Medical Council saw a spectacular increase in the number of requests to validate studies: from 1,410 in 2009 to 4,700 in the last four months. This is 10% of the total number of doctors.
Savings will be taxed in Romania, Romania Libera reads. Any form of saving - from deposits and econ
