In a TV interview, SDSM party leader Zoran Zaev confirmed that his proposal to drastically reduce public sector salaries down to the minimum wage was rejected by his coalition partner DUI.
Zaev made the proposal as his main economic option that would help reduce the huge projected budget deficit, given the economic downturn caused by the coronavirus epidemic. The proposal was strongly criticized, given that all other countries are trying to spur consumer spending, while this would reduce it even further. But this evening Zaev confirmed that there were political considerations as well, coming mainly from the DUI party.
The proposal was put before the Government, but was ruled out, Zaev said. He did not discount the option that it will be re-introduced in the later stages of the crisis.
Regarding the other thorny economic issue – the unwillingness of the Government to pressure banks to provide a grace period to their debtors, Zaev insisted that the approach is correct, as the banks are also major employers and pressuring them could cost jobs in the financial services.