Mrs. Ioana Muntean: Good evening. We will present you the most important measures which have been taken on today’s Government meeting to assist the flood-hit people and local authorities in the counties hit by floods. Further details will be given by Minister Borbely. I will present you the restructuring measures at the level of the Ministry of Labour and Ministry of Health. Prime Minister, you have the floor.

PM Emil Boc: Good evening. The first point that we have discussed on today’s Government meeting has pertained to the problem of floods. We have made the following decisions: first, we approved the norms for materials to rebuild houses destroyed by floods and, secondly, we have mandated the Ministry of Regional Development to undertake legal and procedural steps to acquire the materials needed to rebuild homes. Thirdly, we have mandated the Ministry of Regional Development that through NHA budget, it covers the initial costs of purchasing the necessary materials so that from the Reserve Fund, then through the budget amendment, we supplement the Ministry's budget with the respective amounts.
We established that this procurement procedure be done in the most transparent way possible - I mean the purchase of materials needed to rebuild houses destroyed by floods - using the public bidding procedure through commodity exchanges. We have also taken two decisions on two important areas hit by floods. I refer to the Bacau and Galati – Tulcea areas. To this end, we approved the money earmarking for building the 18 km dam from Săuceşti, Şerbeşti and Siretu-Schineni, worth 25 million lei, of which 14 million in 2010 and 11 million in 2011. For Tulcea County, we approved a government decision whereby, we earmark from the Environment Fund an amount of 8 million lei for the rise of dam in the Grindu area. As you know, currently in Galati, the first and most important decision we took was to protect the city of Galati by building this dam 4.5 km long and 1.5 m high and which, after all the data we have at the moment, is enough to protect Galati from the water level of Danube, currently in evolution. But to prevent future situations such as in Tulcea, Grindu commune- in serious danger today, we decided to approve rise of Grindu dam. I thank the Environment Minister for having succeeded in conducting a a financial analysis and to make available those amounts from the money that is available at the Environment Fund. The Minister will give other details about the two works that I mentioned in terms of protecting the population against flooding.
Today, we have also discussed about the continuation of public sector restructuring in Romania. From this standpoint, we made the following decisions: with respect to the State Secretaries in the Ministries, we decided to have as a rule, two State Secretaries, except the Ministry of Interior, Foreign Ministry and the Ministry of Finance, where we have three State Secretaries.
I asked the Ministers that until next Wednesday, to come with an improved version of the organizational chart and a reallocation of attributions in accordance with the reduced number of State Secretaries that we decided currently on the Government meeting. Can I mention that, for example, the Foreign Ministry will remain with three from five, the Ministry of Regional Development will remain with 2 from 4, the Ministry of Economy with two from five State Secretaries, the Interior Ministry will remain with 3 from 6 and so on. In total, today, we have 57 State Secretaries in Ministries, seven posts of which being vacant positions, 32 State Secretaries will remain after the restructuring. So, 32 of the 57 State Secretaries will remain in office, and next Wednesday, by Government decision, we will formalize this, Ministers having the responsibility to assemble practically the organizational charts after the new decision made today in the Government. We also decided that, at the level of prefectures, we reduce by 50% the number of deputy prefects from 2 to 1. In other words, we will not have two subprefects just one, following today’s decision, and I have mandated the Ministry of Interior to take the necessary steps so that by next Wednesday, we are ready to implement such decisions to restrict public spending, the budget unit from the government level and continuing, as I said last week, with other levels of governmental activity, at local or national level. If you have questions, my colleague Catalin Predoiu said before about the two draft laws to implement the Criminal Code and Civil Code reform so that justice field reform to be completed.

Reporter: The President stated that the VAT increase was a mistake. Were you wrong Mr. Prime Minister?

PM Emil Boc: Following the Constitutional Court’s ruling, we have had available no immediate legal alternative other than that the VAT increase.

Reporter: Mr. Prime Minister, what will the State Secretaries do? Return to the body of senior civil servants, which is currently oversized?

PM Emil Boc: Here ends the work of representation at governmental level. The State Secretaries cannot occupy, as of next Wednesday, a civil service position at the Government level, these are disbanded.

Reporter: Each subprefect has advisors ... an entire office under its authority. Will the respective personnel be laid off too?

PM Emil Boc: The prefectures reorganization schemes are at the Ministry of Interior. They will likely to come to Government in a few weeks for restructuring.

Reporter: Will you impose a supplementary tax on pensions?

PM Emil Boc: As you know, the current law stipulates as follows: today, pensions over 10 million lei are taxed at 16%. This is the law currently in force.

Reporter: The President asked a taxation of all income ...
PM Emil Boc: For 2011, we will have a new budget, and now the Tax Council was approved and it will work with the Government on the Fiscal Budgetary Strategy for 2011 and subsequent years. The discussion will begin as of this fall for a new fiscal policy in 2011.

Reporter: How likely is a new agreement with the IMF?

PM Emil Boc: At this point, we do not have any discussion on a new agreement with IMF.

Reporter: Who will win the FIFA World Cup?

PM Emil Boc: I have more important things to think about. Thank you.