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The financial crisis in Central and Eastern Europe and the Baltic states, which until recently were posting record growth rates, has forced governments to slash budgets, starting with public service salaries — and cabinet ministers are leading the way.

In March, he promised that the agreement that had just been signed with the International Monetary Fund (IMF) would not result in pay cuts. But Romanian Prime Minister, as Gandul reports, Emil Boc now has no option but to adopt the same painful measures that have already been implemented by other Central European states: cutbacks in civil service pay starting at the highest echelons. Public sector employees will lose 8.4% of their income, whilst pensions are set to increase by a modest 2%.

In Hungary, since April 15, the paychecks distributed to ministers in the government of Gordon Bajnai are lower than those cashed by their colleagues in the previous Gyurcsany cabinet. As for Bajnai himself, he has opted to make do with a token salary of one forint (0.4 euro cents) per month. At the same time, civil servants and pensioners have lost their additional month of holiday pay, as well as allowances for heating and various other benefits, including cheap loans for housing. As for the country's politicians, their pay has now been halved. Salaries for Bulgarian and Lithuanian government ministers were reduced by 15% at the beginning of this year, and those paid to Estonian ministers were decreased by 8%. In Latvia, the cutbacks were more severe: minus 15% in February and a further cut of 20% in June.

Latvian teachers, who have fared even worse than their government ministers, have had to accept a 40% reduction in 2008 pay levels. Since 1st July, pensions and other benefits have been reduced by 10%, while children's allowances have been halved. Only a few months ago, Latvia was the fastest growing economy in the European Union, now it is "the invalid of Europe," with a GDP that is expected to fall by 18% this year, and employment that is forecast to rise to 10 %.

In Bulgaria, which is not much better off, 400,000 public sector workers have had to accept a ban on expense claims for work-related travel, phone charges and fuel costs on top of a wage freeze. For the moment  — and this is also the case in Romania — austerity measures have not been applied in Justice and Interior ministries. But more cuts are expected.