Austerity Crushing Romania As Police Protest And Government Official Quits

Romania Protest Police 927

Photo: AP

Romania has descended into political chaos as austerity protests are threatening to rip at the core of the country.Last week, police officers went on strike in the country due to a 25% wage cut, yelling at the presidential palace “Get out your miserable dog.”

Interior Minister Vasile Blag has resigned over the protests.

Now the President has removed his public police detail and, instead, is driving himself to work and only using a private security force.

The country just recieved another loan from the IMF, this tranche worth €884 million.

Romania may need abother €5.7 billion from the IMF after several failed bond auctions have left the country unable to raise cash.

The country’s dire economic state might be the best example of where austerity can go wrong. Romania has been unable to stage a successful economic recovery, as demand from Western Europe has dried up lock-step with the country’s austerity cuts. Without any private sector growth, cuts to the public sector are ravaging the country’s economy, and now political stability.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.