Romania's public administration reform to save EUR 0.7-0.9 billion in public spending

The impact of the reform in local and central public administration will be about RON 3.5-4.5 billion (EUR 0.7-0.9 billion or up to 0.2% of GDP), announced the minister of development, Cseke Attila, according to Economedia.ro.

"The impact on measures regarding local public administration generates RON 1.7 billion financially, the impact on efficiency measures on central public administration - we expect an amount greater than this amount. Somewhere around RON 3.5 - 4.5 billion would be the financial impact of the measures on local and central administration," he specified.

The number of positions in each of the local administration units (including those vacant at this moment) will be cut by 30%, under an agreement reached by the ruling coalition on November 11. This would result in an overall 10% reduction in the number of employees in the local administration – a ratio enforced for the payroll in the central administration bodies as well.

The agreement follows months of negotiations on the law that is supposed to be part of the second package of budgetary measures, to be legislated by the end of November.

The mechanism allows local administration units to temporarily substitute the personnel reduction with a proportional reduction of the overall payroll, but eventually, the number of employees in each unit should be reduced by January 2027.

Minister Cseke Attila stated that this project will be wrapped up in a few days, when its legislation process will begin.

"I propose that this law be promoted by an accelerated procedure in parliament. We have already been in the approval process, we will also ask for the approval from the Economic and Social Council (CES)," he said.

(Photo source: Inquam Photos/George Calin)