A Call for Reform: Reducing Public Sector Jobs and Salaries to Combat Romania’s Deficit

The current state of Romania’s public sector is under scrutiny as the government grapples with a significant public deficit, the necessity for efficiency, and ongoing discussions about layoffs. These issues are compounded by perceptions of excessive salaries and bonuses that fuel public discontent.

The Public Deficit Crisis

Romania’s public deficit has reached alarming levels, hitting approximately 8.6% of GDP in 2024, nearly three times the EU’s upper limit of 3%. This figure reflects a staggering increase in government spending, driven largely by rising public sector wages and social transfers, including pensions.

The government is now under pressure to implement a fiscal consolidation plan that aims to reduce the deficit to 7% of GDP in 2025, with further reductions targeted over the next several years to stabilize public finances and ensure sustainability.The European Commission has approved Romania’s seven-year fiscal plan, which includes specific tax reforms aimed at addressing this excessive deficit. However, achieving these targets will require not only stringent budgetary discipline but also a reevaluation of how public resources are allocated.

In light of the growing deficit, there is an urgent need for efficiency within Romania’s public sector. Many citizens express frustration over bureaucratic inefficiencies and a perceived lack of accountability among public clerks. Reports suggest that some employees exhibit a lackadaisical attitude toward their work, which contributes to the overall inefficiency of government operations. Streamlining processes and enhancing productivity are essential to ensure that taxpayer money is utilized effectively and to restore public trust in government institutions.

Layoffs in the Romanian Parliament

On January 22, 2025, Ilie Bolojan, president of the Senate and leader of the National Liberal Party, announced plans to reduce the Senate’s workforce from 796 to 618 positions. This decision has led to unrest among employees who argue that such cuts are being implemented without adequate consultation. Protesters have expressed fears that these layoffs will further diminish the quality of legislative work, especially when many clerks are already seen as lacking motivation and efficiency.

As part of the strategy to address the deficit and improve efficiency, reducing the size of the public sector workforce has become a focal point. The recent announcements regarding layoffs within the Romanian Parliament highlight this necessity. A leaner workforce can help eliminate redundancies and foster a more dynamic environment where remaining employees are motivated to perform at higher standards. Critics argue that maintaining an oversized workforce only perpetuates inefficiency and complacency.

Shameless Salaries and Bonuses

One of the most contentious issues contributing to public discontent is the disparity between salaries for lawmakers and those for ordinary public employees. While many civil servants face wage stagnation or cuts, members of Parliament often enjoy substantial salary increases. This disparity breeds resentment among citizens who perceive these “shameless salaries” as indicative of a disconnect between lawmakers and the realities faced by ordinary workers.

Moreover, reports of exorbitant bonuses—such as 100,000 EUR payouts upon retirement for employees of state agencies—further exacerbate this sentiment. Such financial rewards for select public employees contribute to an image of privilege that alienates citizens from their government. As frustrations mount over perceived inequities in compensation, it becomes increasingly difficult for authorities to justify their financial decisions while advocating for austerity measures.

The challenges facing Romania’s public sector are multifaceted and require immediate attention. With a soaring public deficit, there is an urgent need for enhanced efficiency, a reconsideration of workforce size, and a critical examination of salaries and bonuses that contribute to societal discontent. As authorities work to implement meaningful reforms, they must recognize that their actions directly impact citizens’ perceptions and confidence in government institutions. Only through decisive action can Romania hope to bridge the gap between its public sector and the needs of its people while ensuring fiscal stability for the future.