Pay cuts reversed in Romania

Romania’s new prime minister, Victor Ponta, has stated that the 25% public sector pay cuts, which were introduced two years ago will be fully reversed by the end of this year.

The pay cut was originally planned as a temporary measure, set to last for just six months until the end of 2010.

However, the previous government restored only part of the lost pay in 2011. And despite a constitutional court decision confirming that the cut was temporary, it was planning a public sector pay freeze for 2012.

This led to growing protests and, in time, the fall of the government.

The new government under Ponta increased public sector pay by 8% in June, and has promised another increase to restore pay to its 2010 levels by the end of the year.