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Thousands of tax workers protest Romanian cuts plan, union says

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Thousands of workers at Romania’s finance ministry and tax agency protested for a second day against a government plan to cut spending as a work stoppage initially in the capital Bucharest extended across the country, according to Bloomberg.

More than 10,000 people out of a total 22,000 joined the protest on Friday in tax offices, according to union leader Vasile Marica. The staff, who handle budget payments and taxpayer auditing, are protesting a plan to rein in a deficit that risks breaking a European Union-agreed goal for this year. 

“It’s a very complicated situation and we’ll talk to the finance minister this afternoon to explain our demands,” Marica said. 

Finance Minister Marcel Bolos pledged Friday to continue talks with employees to find a compromise amid a pressing need to reduce the deficit and avert losing crucial EU funds. 

The Balkan nation’s ruling coalition has yet to finalize a plan to cut spending by reducing jobs and bonuses for state workers and boost revenue by raising some taxes. But groups ranging from business owners to health-care unions have criticized the initiative, with workers threatening to stage nationwide strikes next month.

Romania’s budget deficit widened after the first half of the year as revenue collection slowed and expenses increased. Prime Minister Marcel Ciolacu has signaled that the target of bringing the shortfall back toward the EU ceiling of 3% of gross domestic product next year may be at risk.

In a televised interview late Thursday, Ciolacu rejected talks of austerity measures and said public administration was rather being amended to correct inequities.