Thank you, good day everyone! As I stated in Parliament on the presentation of the two draft laws on which the Government has assumed responsibility - and, that following rejection of the censure motion, have been basically approved by Parliament - we continued the implementation of what we promised, first, the provision of support for companies that have debts to state, by paying the state's remaining obligations and, secondly, by further steps to reduce spending.
Now, with respect to the first measure, to pay the state outstanding debts to companies, the Government adopted an emergency ordinance by which lends 360 million EUR to local authorities for paying outstanding obligations to various companies, suppliers of goods and services or works, companies that themselves have debts to the state budget. It is about 1.5 billion lei, or 360 million EUR, which the Government in the form of loan makes available to local authorities to enable them to pay the debt with goods, services, works of municipalities, local and county councils to companies that in turn have debts to the state budget. Maximum repayment term is five years with one year grace period. Interest is 6.25%. By this decision, we basically get out of a vicious circle in which the state has debts to companies, firms have debts to the state budget and there are bottlenecks in the economy. In this way, there will be eliminated some bottlenecks in the economy caused by the fact that firms that provided works for local authorities had not received money for the performed work and, in turn, could not pay their debts to the state budget /. .. /.
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With respect to further restricting of public spending, the Government has adopted an emergency ordinance on some measures to reduce public spending. The legislative act provides for a 20% cut in spending on goods and services in all public authorities and institutions in Romania (contained in Article 2, paragraph 1 of the Framework Law on the unitary pay of staff paid from public funds no. 330/2009). Over trimesters 3 and 4, all public authorities and institutions in Romania must reduce by 20% expenditure on goods and services. It comes to fuel costs, fuel, supplies, foreign and domestic travel, telephone, furniture purchases and other expenditure on goods and services.
Exempted from this rule are the conveyance costs of pensions and other forms of social assistance, and payment of medical services, medicines, medical devices and medical equipment.
We have also introduced norms regarding the fuel consumption for cars of public institutions. We decided that by the end of 2010, we reduce by 50% the monthly fuel consumption. Thus, the fuel consumption for cars serving Ministers, Secretaries of state or those assimilated to these offices was reduced from 400 to 200 liters, with respect to the Ministries, National Health Insurance House and other bodies of central public administration, fuel consumption will be reduced from 300 to 150 liters per month, the county prefectures, county health insurance houses and other authorities in the field will have their fuel be reduced from 350 liters to 175 liters per month, the county councils and the General Council of Bucharest -from 300 liters to 150 liters per month, local councils of municipalities, districts of Bucharest and cities - from 250 liters to 125 liters, local councils of municipalities and other public institutions - from 150 liters to 75 liters.
With respect to local authorities, I would like to highlight a very important aspect. Currently, there is a legal vacuum in the legislative acts regulating fuel consumption for local authorities. Some local authorities have observed the old existing regulations from 2001, other local authorities have set their norms by decisions of local or county councils. This is why we have discrepancies, from the county councils presidents with unlimited fuel consumption up to county councils and municipalities with fuel consumption restricted to 200 liters. That situation was notified in a report of the Court of Accounts, which was submitted to the Romanian Government, with the request to intervene through regulations for the standardization of such a practice of fuel related expenditure, taking into account that over 2006 – 2008 period, these increases of fuel consumed by cars of local authorities and institutions were spectacular, therefore, we made this decision: to impose norms on monthly fuel consumption, norms to be enforced at least until the end of 2010.
I would also like to clarify the issue of incomes of the secretaries of state, advisers to Ministers, further to their participation in the boards of some trading companies where the state has minority equity.
There will be no salaries of state secretaries or advisers to ministers or other persons appointed by the ministries in the boards at companies where the state has minority equity beyond the level fixed by law for the income of the secretary of state or adviser to Minister. I say that because these benefits are not established where there is not major state equity, these are determined by the majority shareholder. In case of Petrom, for example, 20% of the salary of the Director General was received by the participant in the boards, including the participant from the state.
We cannot intervene to determine the allowance to companies where the state has no major capital. But however, we set very clear that all state representatives, state secretaries, advisers to ministers, who are represented under law and should represent the state, on the basis of normative acts in force in these companies with minority state capital, obligatorily donate, under the sanction of losing their position, the entire benefit to the solidarity fund. Those state secretaries not complying with it will be dismissed immediately. Because that is how we can intervene if they fail to comply with this decision. Again, we cannot impose a law in this respect because there are companies with minority state capital. There, decision is made by the private party, but we can decide that those who represent the state donate entirely the benefits they receive for that position, to state.
I would like to mention that since last year, at companies where the state has a majority, there is a 48 RON worth allowance. Ie, 20% standing for 1% of head of the institution’s allowance, allowance which had been reduced since last year up to the level of the salary of a secretary of state - 48 million ROL(4800 RON). 1% of 48 million ROL, I repeat, is 48 RON. So, since last year, this problem has been solved for those companies where there is a major state capital. There, where, the state has no major capital, we refer to the income of the head of the private company, and hence all that money will be donated to the state.
Reporter: At the Sunday’s meeting with President Traian Basescu, will you discuss the reshuffling of Government?
PM Emil Boc: Take the Constitution which clearly tells you how to make government reshuffle, and my position was and remains constant. When I have to state something, I do it.
Reporter
Finance Minister Sebastian Vladescu said today that at least 100,000 state employees should be fired to restore decent wages. Do you confirm this figure?

PM Emil Boc: I conduct analysis at all levels, on the staff to be fired in the budgetary sector. So far, I can tell two things: so far, the Government that I am leading has cut by 36,000 posts the state personnel, and the final number that we will establish will result from all analyses conducted now in all Ministries, all structures, all agencies so that the decision that we will made, will be based on concrete realities.
Reporter: When these 36,000 jobs?
PM Emil Boc: During the reporting period -March 2010 compared to December 2008.
Reporter: Mr. Prime Minister, we understand that the pension and salary reductions will be enforced in July, not in June. Is it true?
PM Emil Boc: Have you read the law for which we assumed responsibility? What does the law say?
Reporter: This law is not in force yet.
PM Emil Boc: What does it say?
Reporter: You said that this measure is implemented when the law takes effect, and the Constitutional Court will give an answer on June 24 th. So, after 24th until June 30, will it be enforced for the remaining days or from 1st of July?
PM Emil Boc: What does the law say? You put me in the position of explaining it. The law clearly states that the provisions enter into force upon publication in the Official Gazette. Therefore, it shall take effect as of that date of publication.
Reporter: Is it legal for an employer to threaten employees that they would be fired if they do not donate some revenues, as you said, legally?
PM Emil Boc: He/she is not laid off from the Ministerial position unless appointed. If that person is civil servant, he/she keeps his/ her position, but will not represent any longer the state in the respective board. If that person is Secretary of State, appointed by the Prime Minister, he/she is dismissed, if he is civil servant, representing the Ministry, he/she will not receive that money any longer.
Reporter: How will you act regarding the state companies?
PM Emil Boc: As I said, salaries over a certain threshold level will be capped.
Reporter: So, not all wages will be reduced by 25%?
PM Emil Boc: Restoring budgets and their analysis is another component. We talked of the state companies’ big salaries that will be capped, in case they are above a certain level.
Reporter: What level?
PM Emil Boc: It will be set through the legal formula to be established on the future government meetings.
Reporter: What level?
PM Emil Boc: I repeat, when we set it, we let you know.
PM Emil Boc: Thank you.