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BUCHAREST, Romania - Romania's unpopular government appeared to be on the brink of collapse Thursday after the prime minister fired five Cabinet ministers, with the economy minister also saying he will quit.
Romania is mired in its worst recession of the past two decades and the government slashed public sector wages by a quarter and hiked sales tax from 19 to 24 per cent on July 1 to reduce the budget deficit — measures derided by Romanians.
Prime Minister Emil Boc fired the finance minister, labour minister, agriculture minister, transportation and communications minister. Economy Minister Adriean Videanu has told Boc he wants to quit the government to return to party business.
Several key members of the governing Democratic Liberal Party called for Boc to resign. The government's popularity has plummeted in recent months because of spending cuts, but also due to a growing dissatisfaction with President Traian Basescu, who is seen as playing a key though informal role in government affairs.
The International Monetary Fund has predicted that Romania's economy will shrink by 1.9 per cent this year, after a decline of minus 7 per cent in 2009, before returning to growth in 2011.
Romania took a €20 billion loan from the IMF, the European Union and the World Bank last year, when its economy contracted by 7.1 per cent. Some of the money was used to pay pensions and wages.
