{"id":392971,"date":"2014-07-08T15:44:12","date_gmt":"2014-07-08T12:44:12","guid":{"rendered":"http:\/\/www.moldova.org\/?p=392971"},"modified":"2014-07-08T15:44:12","modified_gmt":"2014-07-08T12:44:12","slug":"budgetary-crisis-in-transnistria-hits-public-sector-employees","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/budgetary-crisis-in-transnistria-hits-public-sector-employees\/","title":{"rendered":"Budgetary crisis in Transnistria hits public sector employees"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

The self-appointed administration of Transnistria has decreased wages of employees working in the public sector. The salaries were lowered by 15%. Others faced cuts by 30%.<\/p>\n

The information was revealed by the Foreign Policy Association<\/a><\/strong> based in Chisinau in a newsletter about the Transnistrian region.<\/p>\n

According to the study, a decision of the local \u201cgovernment\u201d says that starting from July 1st, residents of the Transnistrian region will get only 85% of their salaries. The rest of 15% will not be paid. However, this amount will be accounted as public sector debt for the employees.<\/p>\n

The research noted that the extras which were received by the retired people who are still working have been cancelled, while all social payments have been frozen. Furthermore, pension increases will no longer take place in the near future.<\/p>\n

The salary cuts will mainly affect doctors, teachers and civil servants. The Tiraspol-based de facto administration said that the move has been made due to insufficient funds in the region\u2019s budget.<\/p>\n

Transnistria relies significantly on Russian financial assistance. The separatist region charges the residents for the Russian natural gas but the administration does not pay the bills to Gazprom.<\/p>\n

\u201cThis money is being administered by the region, the costs being counted as debt of the Republic of Moldova for Gazprom,\u201d the study said.<\/p>\n

So-called Transnistrian authorities claim that the political and economic association of Moldova and Ukraine with the European Union (EU) will have a negative impact on the regions\u2019 economy.<\/p>\n

However, Tiraspol\u2019s official statistics show that region\u2019s exports to the EU have increased lately.<\/p>\n

\u201cTherefore, the current crisis does not have any link to the signing by Moldova and Ukraine of the Association Agreement with the EU,\u201d the research said. \u201cMore likely this is owed to the fact that Russia ceased payments towards Transnistria, mainly because all funds have been redirected to maintain the situation in Crimea and support the pro-Russian separatists in Eastern Ukraine.\u201d<\/p>\n

The Moldova-EU Association Agreement, which includes the Deep and Comprehensive Free Trade Area, envisages a postponement until 2016 of the new trade rules for the Transnistrian region. This means that the region will still be able to trade with the EU for the next 1.5 years under the previous trade concessions.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>The self-appointed administration of Transnistria has decreased wages of employees working in the public sector. The salaries were lowered by 15%. Others faced cuts by 30%. The information was revealed by the Foreign Policy Association based in Chisinau in a newsletter about the Transnistrian region. According to the study, a decision of the local \u201cgovernment\u201d […]<\/p>\n","protected":false},"author":5,"featured_media":261983,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-392971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"content_social_share":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

The self-appointed administration of Transnistria has decreased wages of employees working in the public sector. The salaries were lowered by 15%. Others faced cuts by 30%.<\/p>\n

The information was revealed by the Foreign Policy Association<\/a><\/strong> based in Chisinau in a newsletter about the Transnistrian region.<\/p>\n

According to the study, a decision of the local \u201cgovernment\u201d says that starting from July 1st, residents of the Transnistrian region will get only 85% of their salaries. The rest of 15% will not be paid. However, this amount will be accounted as public sector debt for the employees.<\/p>\n

The research noted that the extras which were received by the retired people who are still working have been cancelled, while all social payments have been frozen. Furthermore, pension increases will no longer take place in the near future.<\/p>\n

The salary cuts will mainly affect doctors, teachers and civil servants. The Tiraspol-based de facto administration said that the move has been made due to insufficient funds in the region\u2019s budget.<\/p>\n

Transnistria relies significantly on Russian financial assistance. The separatist region charges the residents for the Russian natural gas but the administration does not pay the bills to Gazprom.<\/p>\n

\u201cThis money is being administered by the region, the costs being counted as debt of the Republic of Moldova for Gazprom,\u201d the study said.<\/p>\n

So-called Transnistrian authorities claim that the political and economic association of Moldova and Ukraine with the European Union (EU) will have a negative impact on the regions\u2019 economy.<\/p>\n

However, Tiraspol\u2019s official statistics show that region\u2019s exports to the EU have increased lately.<\/p>\n

\u201cTherefore, the current crisis does not have any link to the signing by Moldova and Ukraine of the Association Agreement with the EU,\u201d the research said. \u201cMore likely this is owed to the fact that Russia ceased payments towards Transnistria, mainly because all funds have been redirected to maintain the situation in Crimea and support the pro-Russian separatists in Eastern Ukraine.\u201d<\/p>\n

The Moldova-EU Association Agreement, which includes the Deep and Comprehensive Free Trade Area, envisages a postponement until 2016 of the new trade rules for the Transnistrian region. This means that the region will still be able to trade with the EU for the next 1.5 years under the previous trade concessions.<\/p>\n

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