country translated into strikes and eventually led to the resignation and replacement of the prime minister and cabinet. In the Jiu Valley government's announcement in 1997 of the closures of the Dâlja and Barbateni mines and the generally deteriorating conditions of the miners sparked riots and then led to a general strike. Despite the probable and most likely reaction of the miners, in order to be eligible for an IMF loan to repay its debts the government was required to close more mines (142 which had been closed since 1997) and was pending decision on closing additional 112 mines. To limit losses in the unprofitable mining sector, then running at $370 million, the government made an announcement just before Christmas 1998 of its plan to close non-profitable mines. After closing about 100 mines and getting rid of 90,000 mining jobs in the course of 1997, including 20,000 in the Jiu Valley, implementing this new plan would result in firing additional 6,500 miners. The result was an outpouring of miner resentment and anger at what the miners saw as another betrayal. Organized by union leader Miron Cozma, on 20 January 1999 an estimated 10-15,000 set out on another mineriad from the Jiu Valley to Bucharest to force the government to change its policy, demand wage increases and re-opening of recently closed mines. Along the way the caravan of miners fought pitched and bloody, tear-gas choked battles with the Gendarmerie and wreaked havoc along the way. The army was mobilized and waited on the outskirts of Bucharest. The anticipated and dreaded showdown between the miners and army, however, never materialized. The miners had not reached Bucharest when a secret compromise was reached between union leader Cozma and Prime Minister Radu Vasile on 22 January. In return for the miners’ agreement to turn around and go back to the Jiu Valley, the government agreed to a 30 percent pay rise, re-opening of two previously closed mines, and the spending of hundreds of millions of European Union development funds on projects in the Jiu Valley. Some analysts conclude that the agreement may well have averted an eruption by disaffected workers in other industries. To many the compromise agreement was seen as a Pyrrhic victory for both sides. While the government avoided a showdown with the miners, the compromise represented “a potentially devastating setback to the government’s flagging efforts to push through market-oriented reforms –