IMF decision postponed by 24 hours

Today's cabinet meeting, where the government was to take a decision on a new arrangement with the IMF, has been put back to tomorrow. It was reported earlier that the International Monetary Fund (IMF) has called on the government to suspend its ten percent pension increase, or face having to freeze all public sector salaries. IMF decision postponed by 24 hours The fiercest opposition to the IMF’s recommendations has been coming from the Associated Pensioners’ Party (PUPS). The PUPS presidency, who are members of the governing coalition, convened last night, and according to unofficial reports, continued to insist that the government decree envisioning a 10 percent increase should go ahead as earlier planned. The PUPS leadership drew up a series of economic measures that party leader and Deputy Prime Minister Jovan Krkobabic was due to present to Prime Minister Mirko Cvetkovic and the IMF delegation. However, it is not clear whether that meeting even took place last night. PUPS official Djuro Peric said that his party would not drop its demands for pensions to be increased by 10 percent, to become effective from October 2009. Peric told journalists in parliament that the PUPS and the party’s coalition partners had met with Prime Minister Mirko Cvetkovic to discuss the proposal, adding that pensions and wages needed to stay at the same level until October and be reviewed every three months. Peric said that PUPS would not leave the government, but said that if the proposal was rejected other measures would have to be decided on subsequently. Asked whether the proposal would go against the party’s pre-election pledge that pensions would be increased to 70 percent of the average wage, Peric said that the world economic crisis was dictating behavior and that some demands would have to be dropped. PUPS said earlier today that the government had exposed Krkobabic to a public lynch, and that it had turned pensioners against workers. Pensioners had been earmarked as the people to blame for any future economic crisis in the country, PUPS stated. The party added that the decree to increase pensions by 10 percent could not be overturned. PUPS stated that the party strongly supported Krkobabic’s stance and announced that if the government tried to return to “the process of social genocide on pensioners,” it would take all available measures to protect their legitimate and guaranteed rights. Jovan Krkobabic (FoNet, archive)

IMF decision postponed by 24 hours

The fiercest opposition to the IMF’s recommendations has been coming from the Associated Pensioners’ Party (PUPS).

The PUPS presidency, who are members of the governing coalition, convened last night, and according to unofficial reports, continued to insist that the government decree envisioning a 10 percent increase should go ahead as earlier planned.

The PUPS leadership drew up a series of economic measures that party leader and Deputy Prime Minister Jovan Krkobabić was due to present to Prime Minister Mirko Cvetković and the IMF delegation.

However, it is not clear whether that meeting even took place last night.

PUPS official Đuro Perić said that his party would not drop its demands for pensions to be increased by 10 percent, to become effective from October 2009.

Perić told journalists in parliament that the PUPS and the party’s coalition partners had met with Prime Minister Mirko Cvetković to discuss the proposal, adding that pensions and wages needed to stay at the same level until October and be reviewed every three months.

Perić said that PUPS would not leave the government, but said that if the proposal was rejected other measures would have to be decided on subsequently.

Asked whether the proposal would go against the party’s pre-election pledge that pensions would be increased to 70 percent of the average wage, Perić said that the world economic crisis was dictating behavior and that some demands would have to be dropped.

PUPS said earlier today that the government had exposed Krkobabić to a public lynch, and that it had turned pensioners against workers.

Pensioners had been earmarked as the people to blame for any future economic crisis in the country, PUPS stated. The party added that the decree to increase pensions by 10 percent could not be overturned.

PUPS stated that the party strongly supported Krkobabić’s stance and announced that if the government tried to return to “the process of social genocide on pensioners,” it would take all available measures to protect their legitimate and guaranteed rights.