"Cut officials’ pay instead of freezing pensions, wages”

BELGRADE Deputy PM Jovan Krkobabic has stated that instead of freezing public sector wages and pensions, salaries of state officials should be cut. The Party of United Pensioners of Serbia (PUPS) leader told B92 that Finance Minister Mladjan Dinkic could have a plan for the freezing of pensions and wages and that he could propose it but that it could not be adopted. "Cut officials’ pay instead of freezing pensions, wages” He added that wages of some officials, including himself, Dinkic and PM Ivica Dacic, should be cut instead. When asked if the government would fall because of differences regarding the important issue among some of its members, Krkobabic stressed that the government would not fall because it “works as a team” and added that only “individuals that do not fit in the team can fall”. The finance minister said in parliament several days ago that coalition partners would in the following two weeks discus budget savings. However, he did not say whether that would include freezing of wages and pensions. “We have to reduce the budget deficit, we cannot keep squeezing something that is dry, we need to cut expenditures,” Dinkic said and pointed out that both the Fiscal Council and the International Monetary Fund (IMF) recommended that a ratio of wages in the public and private sector should be reconsidered. He noted that wages in the public sector were higher than in the private sector “that feeds the public sector” and added that he would propose a new formula for harmonization of public sector wages. The prime minister has also said that pensions and wages will not be frozen. First Deputy PM Aleksandar Vucic has said that the government reshuffle will be done soon while daily Vecernje novosti reports that the reshuffle will take place as soon as a decision on a date for the start of the EU accession negotiations is made. Jovan Krkobabic (Beta, file) B92

"Cut officials’ pay instead of freezing pensions, wages”

He added that wages of some officials, including himself, Dinkić and PM Ivica Dačić, should be cut instead.

When asked if the government would fall because of differences regarding the important issue among some of its members, Krkobabić stressed that the government would not fall because it “works as a team” and added that only “individuals that do not fit in the team can fall”.

The finance minister said in parliament several days ago that coalition partners would in the following two weeks discus budget savings. However, he did not say whether that would include freezing of wages and pensions.

“We have to reduce the budget deficit, we cannot keep squeezing something that is dry, we need to cut expenditures,” Dinkić said and pointed out that both the Fiscal Council and the International Monetary Fund (IMF) recommended that a ratio of wages in the public and private sector should be reconsidered.

He noted that wages in the public sector were higher than in the private sector “that feeds the public sector” and added that he would propose a new formula for harmonization of public sector wages.

The prime minister has also said that pensions and wages will not be frozen.

First Deputy PM Aleksandar Vučić has said that the government reshuffle will be done soon while daily Večernje novosti reports that the reshuffle will take place as soon as a decision on a date for the start of the EU accession negotiations is made.