Austerity cuts ruling set to delay IMF loan
The ruling from the Constitutional Court came after dozens of Romanians tried unsuccessfully to storm the presidential palace to protest the measures and demand an audience with President Traian Basescu.
Riot police repelled those who tried to force their way past barricades.
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Hide AdThe court did not immediately publish its reasons for ruling that the 15 per cent cuts to pensions and 25 per cent cuts to public sector salaries were unconstitutional.
The government will now likely hike the consumer tax and income tax rates to meet the IMF demands for the loan and to keep the budget deficit at 6.8 per cent.