Prime Minister Ilie Bolojan stated on Tuesday that "tens of thousands" of jobs will be cut from the central government and local administration in the coming months. He also noted that while reforming state-owned enterprises (SOEs) is a priority, it is "not very easy to implement."
"This is one of the most significant challenges we face in the coming months. As you know, prior to the budget, we adopted the administration package which mandates a 10% reduction across the national governmental apparatus, ministries, and local public administration," Bolojan told Euronews when asked how many positions would be abolished by year-end.
"Consequently, we will see reductions in the coming months totaling tens of thousands of posts across the entire central and local administration. However, these cuts must be formalised; they require council resolutions, ordinances, government decisions, and the restructuring of competitive exams," the Prime Minister explained.
Bolojan clarified that if these spending cuts are not made, the Ministry of Finance has already budgeted for reduced payroll costs based on these percentage drops across all ministries.
"In a few months' time, it will become evident that the current allocations do not cover personnel costs unless these reductions are carried out. This is what happened last year, for instance, when 5% staff cuts were projected for the early months, but no reductions were actually made. On the contrary, spending rose, leading to a 10% increase in the salary bill for the first six months compared to the previous year, which resulted in the deficits we faced," he added. "We cannot afford a repeat of that this year, and this will be closely monitored. It is not an easy task, but we must do it."
The Prime Minister emphasised that all public institutions - ranging from the national broadcaster (TVR) to various authorities and ministries - must implement a 10% staff reduction.
"In sectors where there is a staffing shortage and where we cannot afford cuts - such as the Ministry of Interior and the Ministry of Defence - a measure will come into force by the end of this month. We must present a public consultation project to increase the retirement age for these specific categories," Bolojan explained.
Regarding the reform of state-owned enterprises, the Prime Minister admitted it is a priority that is "not very easy to implement."
"Unlike a ministry, where you can intervene via ordinance or government decision, these companies are led by managers appointed through recruitment processes that may or may not have been entirely merit-based. Ultimately, they hold management contracts that, unfortunately, often lack clauses that make the role a challenge rather than a reward," said the PM.
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