Romania has just slashed civil service salaries and pensions. A sign of things to come, asks Nick Hood?
Flying into Timisoara, the day after Romania’s President announced swingeing cuts of 25% in salaries for civil servants and a 16% reduction in pensions for all those unlucky enough to be retired, was a sobering moment, writes Nick Hood. The pensions cut reverses most of a 20% increase rather recklessly brought forward by the previous government ahead of the 2009 election. Even more interesting was discovering the next day that the Vice-President of the Central Bank had been an insolvency practitioner in a previous commercial life. With the current state of the UK’s public finances, this may yet be a path sensibly followed by our own Bank of England….
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Romania has just slashed civil service salaries and pensions. A sign of things to come, asks Nick Hood?
Flying into Timisoara, the day after Romania’s President announced swingeing cuts of 25% in salaries for civil servants and a 16% reduction in pensions for all those unlucky enough to be retired, was a sobering moment, writes Nick Hood. The pensions cut reverses most of a 20% increase rather recklessly brought forward by the previous government ahead of the 2009 election. Even more interesting was discovering the next day that the Vice-President of the Central Bank had been an insolvency practitioner in a previous commercial life. With the current state of the UK’s public finances, this may yet be a path sensibly followed by our own Bank of England….