PM promises to boost government wages

New Prime Minister Victor Ponta, picked by President Traian Basescu after mass anti-cuts protests booted out the previous right-wing government, also promised to slice a tax on bread from 24 to 9 per cent.

Parliament is expected to approve his cabinet on Monday. It is made up mostly by Social Democrat MPs with some National Liberals and Conservatives.

A confidence vote last week toppled a right-wing coalition that had been in power for two months.

Aside from the cuts, it had been criticised for handing shale gas rights to US energy giant Chevron.

Mr Ponta temporarily banned shale gas exploration on Thursday.

He also promised to take another look at plans to build Europe's biggest opencast gold mine in Transylvania, which many Romanians oppose.

Rosia Montana Gold Corporation, mostly owned by Canadian company Gabriel Resources with a small stake held by state firm Minvest, has pushed for 14 years to get the right mining permits.

President Basescu urged the previous government to hurry things up, saying it would bring in foreign cash.

But local residents, environmentalists and academics have protested against the mine, which would use 12,000 tons of cyanide a year.