“Short term prospects are poor, and when further details on the austerity plans are released, we will probably revise our 0.9% economic growth forecast for end of the year”, ING said.

President Traian Basescu said yesterday the Government had reached an agreement with the International Monetary Fund, denying the rumors on a tax hike.

The plan envisages reduction in wages by 25%, by 15% in unemployment benefits and subsidies.