RRI Live!

Listen to Radio Romania International Live

Government keeps public spending in check

The austerity measures announced by Romanias new Government spark the first protests.

Government keeps public spending in check
Government keeps public spending in check

, 31.12.2020, 14:00

Less than a week after the Liberal Florin Citu took over the prime minister seat, his rigour as finance minister, a position he previously held, started to be felt. The coalition government, made up of the National Liberal Party (PNL), the USR-PLUS Alliance and the Democratic Union of Ethnic Hungarians in Romania (UDMR) decided on Wednesday, through an emergency order, not to increase the salaries of public servants next year. Salaries, just like bonuses, compensations and food subsidies have been capped at their level this month. The decision applies to the entire staff working in the central and local public administration, including dignitaries. The ordinance postpones by one year the payment of the so-called special pensions of mayors, pensions that do not comply with the contribution principle. According to PM Citu, all these measures are aimed to keep public spending in check and to increase investment.



The budget deficit target for 2021 has been set at 7% of the GDP. Under the emergency order, over 3 billion euros from the national budget will be saved. The document also provides support for the hospitality industry, the payment of technical unemployment and of 41.5% of the salary of the employees whose jobs are preserved. Another emergency order extends by another three months the deadline for interest rate postponement applications. The payment of interest rates can be postponed for 9 months at the most.



Vasile Dancu, head of the National Council of the Social Democratic Party, in the opposition, says that the new cabinet governs in an anti-social manner, as the promises made by the parties in power during the election campaign were in fact empty words. Apart from the political games, trade unions in the healtcare system say that the salary cap will also affect those who fight directly with the pandemic, that is the medical personnel. Employees with the Interior Ministry are also unhappy with the measure and have sent their message to the Interior Minister Lucian Bode. Clerks have also threatened with protests both in Bucharest and in half of the prefect’s offices in the country.



Moreover, the recent announcement of the Electoral Authority that political parties will ask for the repayment of more than 30 million euros, representing some of the expenses made during the parliamentary elections this year, has increased the state of irritation at society level. The amount is almost four times bigger than at the 2016 parliamentary elections, although less than one third of the electorate went to the polls this year and that only 9% of Romanians said they trust political parties, thus making the legitimacy of the latter even more questionable. (Translated by Elena Enache)


The president of Romania Nicușor Dan (photo: presidency.ro)
Today in the News Thursday, 23 April 2026

Consultations with pro-European parties

  Consultations were held in Bucharest on Wednesday between president Nicușor Dan and the Social Democratic Party (PSD), the National Liberal...

Consultations with pro-European parties
photo: Mediamodifier / pixabay.com
Today in the News Thursday, 23 April 2026

Romania’s budget deficit goes down

Romania has managed to trim its budget deficit from 9.3% of the GDP in 2024 down to 7.9% in 2025, data released by the European Statistical Office...

Romania’s budget deficit goes down
Шлем из Коцофенешть и браслеты
Today in the News Wednesday, 22 April 2026

The stolen helmet and bracelets have returned home

The Coțofenești helmet and two Dacian gold bracelets, recovered after being stolen from the Drents Museum in the Netherlands, have returned home....

The stolen helmet and bracelets have returned home
Photo: Azomureș / Facebook
Today in the News Wednesday, 22 April 2026

Romgaz to buy Azomureș

The biggest producer and main supplier of natural gas in Romania, Romgaz, whose main shareholder is the Romanian state, has made a concrete offer to...

Romgaz to buy Azomureș
Today in the News Tuesday, 21 April 2026

Political crisis in Romania

The decision of the Social Democratic Party (PSD), the main party in Romania’s ruling coalition, to withdraw their support for the Liberal Prime...

Political crisis in Romania
Today in the News Tuesday, 21 April 2026

Romania Industry Day in Brussels

The Romanian Industry Day took place at the NATO headquarters. This economic diplomacy event, held Monday in Brussels, was designed to promote...

Romania Industry Day in Brussels
Today in the News Monday, 20 April 2026

Romania, a regional nuclear energy hub?

  Romania may become the largest nuclear energy hub in the region in the coming years, in the context of major investments in production and...

Romania, a regional nuclear energy hub?
Today in the News Monday, 20 April 2026

Romania at the Paris Book Festival

Romania participated in the most important international book event in the capital of France, held under the spectacular dome of the Grand Palais,...

Romania at the Paris Book Festival

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company