Restructuring in state institutions
Over 1,800 positions subordinated to the Romanian Government will be eliminated, and several institutions could be merged or even abolished.
Mihai Pelin, 21.02.2025, 14:00
The biggest cut in operating expenses in the history of the Government is starting, Prime Minister Marcel Ciolacu announced in Bucharest. In the government meeting he showed that several public institutions will be merged or abolished, with the personnel scheme being reduced, including the posts of state secretaries. Approximately 1,800 positions of civil servants and contractual employees from 32 institutions under the subordination and coordination of the Executive will be abolished, stated Prime Minister Ciolacu, explaining that this signal had been expected both by the public opinion and especially by the business environment.
Marcel Ciolacu: “We are abolishing and merging authorities and institutions. We are reducing the number of employees and cutting official positions. In total, we are talking about a massive cut in posts of 13.5%.”
Regarding those institutions that have an organizational chart approved by the Supreme Council of National Defense (CSAT), the head of the Prime Minister’s Chancellery, Radu Oprea, explained that government decisions will follow for the approval of the organizational charts, for their organization and functioning. Regarding the vacant positions, he added, they intend to release those who are subject to the decision of the High Court of Cassation and Justice by which the cumulation of the pension with the salary is prohibited. Prime Minister Marcel Ciolacu’s announcement to reduce the number of posts in government institutions comes after he asked the ministers, in the January 10 government meeting, to come up with proposals to restructure positions in the administration and in the state companies. The staff reduction proposals, which Prime Minister Ciolacu declared to be a priority, are part of the 2025 budget calculations.
Similar measures were taken by Parliament. The Chamber of Deputies voted, at the beginning of February, to reduce the number of posts by 240, and the Senate decided to abolish 178. According to experts, however, it is not clear what the impact of the restructuring will be on public spending. The number of positions occupied in public institutions and authorities in Romania was, in January, 1.3 million. In 2020, 1.25 million people were employed by the State, in 2021 – 1.26 million, in 2022 – 1.28 million, and in 2023 – 1.29 million. For a good part of these years, employment in the state institutions was blocked, employment being made only through derogations issued by the ministers and the prime minister. Let’s also remember that, at the end of last year, the Government headed by Marcel Ciolacu adopted an ordinance by which the salaries of state employees and public pensions were frozen. Also, with a view to making budget savings, the tax facilities in the IT, construction and agriculture fields were also eliminated, the taxation ceiling for micro-enterprises was reduced by half and the tax on dividends was increased to 10%. (LS)
