Romania's new government said today that it will boost public-sector wages that were cut by a quarter to get a £16 billion IMF loan in 2010.
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.
George Osborne's advice from the International Monetary Fund is like the curate's egg - good in parts.
Attacks such as yesterday's horrific murder in Woolwich didn't happen before the 'war on terror.' It's time we recognised the consequences of the conflicts we've unleashed
Why the US Department of Justice and the Serious Fraud Office are investigating the bank's deals in the Middle East