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Input: "This programme to cut public expenses was inevitable " President Traian Basescu said during a press conference on Thursday after a meeting with IMF and European Union representatives in Bucharest.
 Wages in the public sector are to be cut by 25 percent  Basescu said  adding that "all salaries  including the minimum one  will be affected."
 These cuts should help Romania "avoid an extremely difficult situation  generated not so much by what is going on in its own economy  as by developments in the region " he said  in a reference to the Greek crisis.
 Basescu's announcement came as the IMF prepared to give its verdict on whether or not to give Romania a fifth instalment of the loan package.
 Basescu said the government had chosen the "bitter pill" of slashing public spending instead of raising taxes.
 "Hoping economic growth will return  wages can be restored to their present level in 2011 " he added.
 But Basescu said the "fat state" could not keep on growing at the expense of a "slim" private sector.
 "More than 60 percent of the public revenues go to public wages  pensions and other benefits. Then where can we find money for schools  hospitals and the military?" he asked.

Romania braces for IMF-linked austerity cuts