EU Commission rejects Romanian draft law on public sector wages

The European Commission has rejected Romania's draft law on public sector wage spending. According to Ştirile ProTV, the Commission believes the proposed measures create unbalanced expenditures and worsen the budget deficit. Romania had proposed reducing spending first to 16 billion lei ($3.5 billion), then to 12 billion lei ($2.6 billion), but this was insufficient. The law must be adopted by the end of August, otherwise the country risks losing a €700 million EU disbursement.