“We will have to have around 1,260,000 on state payroll by 2011, from 1,360,000 this year, so that the Government wouldn’t spend more than 39 billion lei on wages”, said Vladescu.

The Ministry of Finance announced new rounds of layoffs in the public sector for the remainder of the year, as well as in 2011. “We’re talking about cutting public sector salaries, about the restructuring of all institutions under state administration”, said Vladescu.

The Ministry of Finance said that “laying off all ministers and secretaries of state alone would save few millions euro in payroll costs”, as Romania must achieve savings of more than €2 billion.

Yesterday, Sebastian Vladescu added that the planned austerity measures (wages and pension cuts) will be put in place by mid next year.

The Minister of Finance said it expects the economy to recover in the second half of 2011.