Romania’s government plans to promote a public administration reform law and an accompanying “economic recovery package” in parliament on January 29, prime minister Ilie Bolojan said during a meeting of the National Liberal Party (PNL). Economedia.ro reported on January 19, citing a PNL press release, that the cabinet intends to seek rapid approval of both measures through the procedure of assuming responsibility.

The bills are needed ahead of the 2026 budget planning, expected to be completed by the executive around mid-February.

Bolojan said the public administration reform bill would be submitted for endorsement under an accelerated procedure, allowing it to pass unless a no-confidence motion is filed and adopted. 

While a broad political agreement on the reform had been announced before Christmas, the final endorsement would take a further ten days, resulting in a total delay of around five months compared with the initially envisaged timetable.

The prime minister said the reform law would be promoted simultaneously with a separate legislative package aimed at supporting economic recovery. The government will also assume responsibility on January 29 for the economic recovery package, which is expected to be finalised by January 26.

The content of the economic recovery package has not been publicly detailed so far. The initiative has been repeatedly advocated by the Social Democratic Party (PSD), but without specific measures being outlined to date. It was broadly perceived as a bargaining instrument aimed at balancing the reformist measures pushed by PM Bolojan.

The public administration reform law forms part of the second package of budgetary measures designed to ensure fiscal consolidation along the seven-year adjustment path agreed with the European Commission in January 2025. The reform is intended to support efforts to reduce Romania’s high budget deficit and comply with commitments made under European fiscal surveillance.

A draft of the bill was published last week. It envisages a reduction of around 10% in payroll costs across the public administration, mainly through cuts to staffing levels in local government and limits on personnel-related expenditure at the central government level. The draft also introduces new procedures aimed at improving transparency and discipline in public spending.

The proposals have generated resistance among local authorities, which argue that staff reductions could undermine administrative capacity, particularly in smaller municipalities. 

iulian@romania-insider.com

(Photo source: Gov.ro)