Romanian government resigns over economy
PM Emil Boc makes announcement after weeks of protests over austerity measures
The Associated Press
Posted: Feb 6, 2012 4:19 AM ET
Last Updated: Feb 6, 2012 6:29 AM ET
Romania's Prime Minister Emil Boc has announced that his government intends to resign to protect the stablity of his country. (Bogdan Criste/Reuters)
The prime minister of Romania says he and his government will resign immediately to protect the stability of the country.
Emil Boc said Monday he is resigning "to ease the social situation" — referring to weeks of protests in Romania over austerity measures that he introduced in 2010.
Boc, who became prime minister in 2008, urged Romania's feuding politicians to be mature and rapidly vote for a new government. He defended his record, saying that he had taken "difficult decisions thinking about the future of Romania, not because I wanted to, but because I had to."
He added that the International Monetary Fund has forecast growth of up to two per cent this year — lower than expected, but higher than the European Union average.
Romania signed up for a 20 billion euro ($26 billion US) loan with the IMF, the European Union and the World Bank in 2009 to help pay salaries and pensions, after the economy shrank by more than seven per cent. In 2010, the government increased sales tax from 19 per cent to 24 per cent and cut public workers' salaries by a quarter to reduce the budget deficit.
In January, Romanians staged weeks of protests to express anger at cronyism and a perception that the government is not interested in the problems of ordinary people in this nation of 22 million.
They protested low living standards, widespread corruption, and the passage of some laws without a parliamentary debate.
"I know that I made difficult decisions, but the fruits have begun to appear," Boc said in a statement. "The most important thing is the economic stability of the country," he said, adding, "In times of crisis, the government is not in a popularity contest, but is saving the country."
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