Increasing the minimum wage could drive many companies out of the competitive market and lead people into unemployment, therefore a discussion is needed between members of the Executive, employers’ associations and trade unions, Romania’s President Nicusor Dan said on Friday.

„Obviously, we would like salaries in Romania, including the minimum wage, to be high. It is almost always a matter of balance between what the economy can afford – and that is why a discussion between the Executive, employers’ associations and trade unions is needed – because increasing the minimum wage can push many companies out of the competitive market and lead people into unemployment. An then, those people would prefer to keep their current wages rather than wake up jobless,” Nicusor Dan explained.

Asked about the layoffs announced in the private sector, the head of state replied that it was obvious that a fiscal reconfiguration would inevitably bring economic effects and underscored that there is still demand for labour on the Romanian market.

„It is obvious that, from a, let us say, fiscal reconfiguration, economic effects follow. This fiscal reconfiguration, with certain nuances, was inevitable. Fortunately, there is a need for labour on our job market. You can see that we are forced to bring in workers from Asia for certain areas. Thus, of course, it is painful on a personal level, but it is a necessary reconfiguration,” Nicusor Dan pointed out.

President Nicusor Dan participated on Friday in the Summit organised by the Concordia Employers’ Confederation under the motto ‘Intelligent Development, European Competitiveness’, which brings together leaders from the business and academic sectors, policy-makers and economic experts. AGERPRES