Romanian executive to cut 1,800 civil servant positions, keep VAT and flat tax rates

Romanian prime minister Marcel Ciolacu revealed plans to cut 1,800 civil servant positions (13.5%) from 32 institutions under the government's authority during press statements on Thursday, February 20.

The prime minister, who said that this is the start of the largest reduction in public expenditures in history, also added that the government will not raise the flat tax rate or the VAT to tackle the deficit.

“We are launching the largest reduction in operational expenses in the history of the Romanian government. We are eliminating 1,800 civil servant and contractual positions from the 32 subordinate institutions. We are dissolving and merging authorities and institutions, reducing the number of employees, and cutting official positions. We are talking about a massive 13.5% reduction in positions. This is a concrete signal, expected by the public and the business environment,” stated Marcel Ciolacu.

The prime minister added that the cuts were inspired by Elon Musk, referencing the Department of Government Efficiency, or DOGE. The new body, however, has had a mixed record, firing essential government employees such as cancer researchers or nuclear scientists and technicians by mistake.

Earlier this month, former Senate president and liberal leader Ilie Bolojan - currently serving as interim president - reduced the organization’s staff by 180 positions. Additionally, the Social Democratic president of the Chamber of Deputies also announced that 200 positions within the institution would be eliminated in the near future.

During the same press statements, the prime minister said that the government “will not touch the flat tax rate or VAT.”

“We agreed yesterday with the Foreign Investors Council to work together to identify the best measures for the country’s economy. We are not touching the flat tax rate or VAT, we trust our economic growth potential,” said Marcel Ciolacu, cited by Digi24.

(Photo source: Gov.ro)