RRI Live!

Listen to Radio Romania International Live

The government’s fiscal reforms

The Romanian government is preparing a third package of fiscal measures.

The Bolojan Cabinet / photo: gov.ro
The Bolojan Cabinet / photo: gov.ro

, 20.11.2025, 14:00

In a move to reduce the country’s excessive deficit, the coalition government in Bucharest is preparing a third package of fiscal measures that may be adopted next week by assuming responsibility in Parliament. In the local administration, the government aims to either reduce the number of occupied or vacant jobs or to cut personnel expenses by 10%. While in the central administration, it is considering a 10% cut in personnel expenses. T

his third package must be adopted before the adoption of the 2026 budget for the sake of financial discipline, says the Liberal Prime Minister Ilie Bolojan. He explained that the recommendation that all ministries cut their expenses by 10% does not necessarily lead to a cut in salaries:

“On the one hand, all legislation allowing the budget to be created on a sound basis, keeping spending in check and enforcing budget discipline must be adopted in advance. On the other hand, it is difficult to start making exceptions and all of us who are in a public position, all ministries, in one form or another, must be part of this effort. I must emphasize that it’s not about cutting salaries, but about managing their personnel expenses better, stop hiring, look at bonuses and reorganize their activities better.ʺ

The Social Democrats have a different stance on the matter within the ruling coalition. The party on Wednesday decided in no form to support a 10% cut in public sector salaries from January 1st as intended and called for other measures to cut spending than those proposed by the prime minister under the third package. The leader of the Social Democrats, Sorin Grindeanu:

“Estimates indicate that the state would be able to save around 10 billion lei if we made this 10% cut in personnel expenses. Which, obviously, can be saved in other ways and there is no need to cut the salaries of teachers, doctors, police officers, military personnel, or anyone else.”

On the other hand, the bill on the reform of magistrates’ pensions has the support of the entire ruling coalition. The pension system in place makes magistrates a privileged professional category, on account of earning very large pensions and being able to retire earlier. The new bill stipulates that the pension of a judge or prosecutor will no longer exceed 70% of their last net salary and that the retirement age will increase to 65 years, over a 15-year transition period, from January 1, 2026. The bill will next be submitted to the Superior Council of Magistracy for its opinion, before the government can assume responsibility for it in Parliament. Magistrates are also unhappy with this new version of this bill, a first version having recently been rejected by the Constitutional Court for procedural reasons. A milestone in the National Recovery and Resilience Plan, the bill on the reform of the magistrates’ pensions system is a condition for the release of European funds that are so necessary in these times of austerity.

Photo: gov.ro
Today in the News Wednesday, 06 May 2026

Ilie Bolojan government collapses

The government led by the liberal Ilie Bolojan was dismissed on Tuesday following the adoption of a no-confidence motion initiated by the Social...

Ilie Bolojan government collapses
SAFE instrument
Today in the News Wednesday, 06 May 2026

Signing of the SAFE Loan Agreement

Just before the vote of no confidence, the government in Bucharest approved on Tuesday, via a memorandum, the signing by the Minister of Finance of...

Signing of the SAFE Loan Agreement
European Political Community Summit (Photo: presidency.ro)
Today in the News Tuesday, 05 May 2026

Meetings for Europe in Yerevan

Created as a platform for dialogue following Russia’s invasion of Ukraine, the European Political Community Summit brings together leaders from...

Meetings for Europe in Yerevan
Premiile Gopo, la a 20-a ediție / Foto: Agerpres
Today in the News Tuesday, 05 May 2026

The 2026 Gopo Awards

The French have the Césars, the Americans have the Oscars — and in Romania, the most prestigious annual awards for film professionals carry the...

The 2026 Gopo Awards
Today in the News Monday, 04 May 2026

Bolojan Cabinet faces no-confidence motion

The motion was initiated by the Social Democrats (PSD), Bolojan’s former governing partners. In a surprising move, PSD has allied with AUR, the...

Bolojan Cabinet faces no-confidence motion
Today in the News Monday, 04 May 2026

Romania and National Recovery and Resilience Plan funding

The minister for investments and European projects Dragoș Pîslaru said Romania managed to recover 350.7 million euros from its National Recovery...

Romania and National Recovery and Resilience Plan funding
Today in the News Thursday, 30 April 2026

Romania at the Three Seas Initiative Summit

Dubrovnik hosted the 11th annual summit of the Three Seas Initiative, a platform founded in 2015 that brings together 13 countries located between...

Romania at the Three Seas Initiative Summit
Today in the News Thursday, 30 April 2026

EU unlocks loan to Ukraine

The European Union has recently approved the pledged 90 billion Euro loan to Ukraine as well as the 20th sanction package against Russia after three...

EU unlocks loan to Ukraine

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