In a related development, Vosganian added that further public sector wage increases would have to be approved in 2008 to reduce the temptation for Romanians to move to more prosperous EU countries in search of better pay.
Romania‘s annual inflation rate stood at 6.6% in December, far exceeding the 2% ceiling set by the European Central Bank for countries in the Eurozone.
Romania’s central bank has raised its annual inflation forecast to 5.7% in December from a previous prediction of 3.9%, citing higher food prices due to a drought in the summer and a worsening outlook for Romania’s currency, the leu.
On Monday the leu hit a three-year low against the Euro, as investors became increasingly worried about Romania’s large current account deficit. (balkaninsight)
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