June 25, 2010 / 8:26 AM / in 9 years

Romania court rules some cuts illegal - agency

BUCHAREST, June 25 (Reuters) - Romania’s Constitutional Court rejected some parts of a key austerity package related to pensions on Friday, endangering a vital IMF-led aid deal, local news agency Agerpres reported, citing judicial sources.

The court said an official announcement would follow shortly.

Disbursement of about 2 billion euros in aid from the International Monetary Fund and the European Union depended on the court’s approval of a government move to slash state wages by a quarter and cut pensions by 15 percent.

The IMF deal is the main anchor for foreign investors, whose cash is vital to the struggling recession-hit economy. (Reporting by Luiza Ilie and Sam Cage; editing by Philippa Fletcher)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below