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.

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Moreover, political preparations have been made—no current law allows the President to run for a position as a Member of the Parliament, so this had to be fixed. Hence, on Wednesday, September 18, the Liberals, the political party supporting the President, registered the draft of the bill to allow any President during the last three months of the mandate to run as an independent on the lists of any political party.

Sources say the Socialists won’t oppose the bill, and Klaus Johannis will promulgate the law after Parliament votes.

The scenario goes even further—the same sources say the President will be the first on the Liberal Party’s list for the Senate in Bucharest, undoubtedly making him a Senator. Sources say Johannis also aims for the Head of the Senate position, the second position in the State.

In addition, as the Liberals have very low chances of winning the presidential elections, Nicolae Ciuca, the current Head of the Liberal Party and party’s candidate for the presidency, will resign, and Klaus Johannis will be voted party leader.

The above confirms the political stakeholders’ expectations that a Socialist candidate (such as Marcel Ciolacu, the Socialist leader, or Mircea Geoana, the former Secretary General at NATO) will be elected as Romania’s President. Thus, by sharing the top state positions, the President and the Head of the Senate, respectively, Socialists and Liberals will be able to run the future governing coalition as they currently do.

Klaus Johannis was forced to aim for a position within the Romanian State, such as the Head of the Senate, after his pursuit of a top NATO or European position failed.

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Ukraine is not the most popular country for Romanians, despite the military and logistic support the Romanian Government offers its Northern neighbour. Yet, the Bystroye Canal issues between the two countries and the cheap contaminated Ukrainian grain scandal spoiled Ukraine’s image in Romania.

Why did Zelensky cancel a speech in Romania’s Parliament?

Zelensky’s speech cancelling is because the Romanian Opposition prepared protests in Parliament during the speech.

George Simion, the leader of the Nationalist Party AUR and Diana Sosoaca, the leader of the Suveranist Party SOS, were the two leaders to announce the protests.

We are going to war for Zelensky’s grain! March out of our country, godless man! If you think we will sit idly by, you are wrong!

Senator Diana Sosoaca before Zelensky’s visit to Romania

Not only that, but Geroge Simion mocked the cancellation of Zelensky’s speech.

With pain in our hearts, we announce that the brave Ukrainian president, Volodymyr Zelensky, will no longer come to the Romanian Parliament today.

George Simion, AUR leader

Both leaders are banned from entering Ukraine. Diana Sosoaca is banned from entry into Ukraine after she initiated a bill for Romania to get back its former territories from Ukraine. Zelensky considers Romania occupied North Bukovina in 1918, as revealed in a speech in the Ukrainian Parliament in December 2020. This made the Romanian Government at the time to protest against this historical ineptitude.

The Ukrainian President is meeting his Romanian counterpart and the head of Government instead.

Late edit: Being asked by the Romanian journalists, during the joint press conference held with President Johannis, why he cancelled the speech in Parliament, Zelensky replied he hadn’t had any speech ready and hadn’t planned to deliver a speech. In political pundits’ opinion, this saved the day for Romania and made it look like the long-awaited speech wasn’t on President Zelensky’s agenda.

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Media: Romanian Senator Diana Sosoaca has submitted a bill proposing for the southern region of Ukraine to join Romania. In this step, the marginal politician tries to “restore the cultural identity of the Romanian population.” This a classic example of the Russian revanchism method. We strongly condemn the attempt to question the territorial integrity of Ukraine to undermine the spirit of a good neighbourhood between Ukraine and Romania. The Foreign Ministry of Ukraine initiates sanctions on Diana Sosoaca as a person who threatens national security.

Oleg Nikolenko, spokesperson of the Ukrainian Ministry of Foreign Affairs

This message comes after the Romanian senator initiated a law denouncing the treaty between Romania and Ukraine to get back the former Romanian territories from Ukraine.

The Romanian senator replied immediately and called the Ukrainian state “a nazi one”.

Through this vile attack on me, Ukraine proves its character as an abusive and fascist state. Through this threat that Ukraine makes to me, I become in solidarity with the Romanian minority in Ukraine, which Kyiv treats as a threat to the Ukrainian state, which is why it is systematically and programmatically abolished in the process of ethnic cleansing and forced Ukrainization reminiscent of Nazi Germany.
How can Ukraine afford to threaten a senator of the Romanian state for a legislative proposal? Since when does Ukraine decide what happens in the Romanian Parliament? Is Romania a state occupied by Ukraine, and we didn’t find out? Ukraine is indeed the occupier of some Romanian territories that I am fighting to return to the motherland’s bosom, but when does Kyiv have the right to veto Romania’s politics?
This threat to Ukraine shows this state’s intention to eliminate those who oppose Kyiv’s Nazi policies physically. By the statement of the Ukrainian MFA, it is clear that we have become the number one target of Ukrainian criminals. But this only confirms the justice of my legislative proposal to return the territories abusively owned by Ukraine to Romania!

Romanian Senator Diana Sosoaca on the announcement of her sanctioning by Ukraine

Also, Diana Sosoaca reminded the Ukrainian officials about a resolution of the United States issued in 1991, adopted by the American Senate, which supports the people’s right to self-determination in the Republic of Moldova and Northern Bukovina.

I also remind the Ukrainian MFA that my legislative provision is based on US Senate Resolution no. 148, of June 11, 1991, adopted by the American Senate, which clearly states “the conviction of the Senate that the United States must support the right to self-determination of the people of the Republic of Moldova and Northern Bucovina”. Is the US Senate also a threat to Ukraine’s national security? Also, my legislative proposal is based on the Declaration adopted on November 28, 1991, by the Parliament of Romania regarding the Referendum in Ukraine and published in the Official Gazette of Romania, which states that the referendum in Ukraine of December 1, 1991, “cannot be valid concerning the territories Romanian territories abusively annexed by the former U.S.S.R., territories that never belonged to Ukraine and belong to Romania by right”. So, is the Romanian Parliament a threat to Ukraine’s national security?

Diana Sosoaca Romanian Senator

There is no official position of the Romanian Ministry of Foreign Affairs regarding the intention of sanctioning a Romanian Senator for initiating a law.

As mentioned in our previous post, the law has close to zero chances of being adopted in Parliament. Yet, all this is a diplomacy lesson for all the novices, and in our opinion, no reaction from the Ukrainian MFA would have been the proper way to handle a law initiative of this sort. Now, as the Ukrainian officials reacted, the initiative got a new dimension, and things could escalate beyond initial expectations.

Also, the Ukrainian official makes a tiny mistake in his message. When naming the Romanian politician “a marginal one”, Nikolenko contradicts the measures announced. If the politician is marginal, you don’t sanction her. You don’t even pay attention to what she initiates. Or, if you sanction her, she’s not as marginal as you intend the public to think. Either way, Ukraine’s announcement offers her a significant position, and the Romanian politician will use this conflict as a new opportunity to promote herself and her ideas. Who wins?

The tensions between Romania and Ukraine are growing following the Bystroye Canal scandal, especially after Ukraine refused the Romanian ships to enter its territory to measure the extension of the dredging works conducted without the knowledge of the Romanian public. This new incident is only putting gas on the fire.

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In the senator’s view, Romania must regain its old territories by 2027. This will be accomplished by modifying the existing Treaty between Romania and Ukraine.

We request the annexation of the historical territories of Romania, namely Northern Bucovina, Herța, Buceag (Cahul, Bolgrad and Ismail), historical Maramureș and Serpent Island, Romanian territories stolen by the USSR and abusively owned by Ukraine.

Law initiated by Diana Sosoaca for regaining the old Romanian territories from Ukraine

In 2020, the current president of Ukraine had a different opinion, contradicting history and facts. In his view, Northern Bukovina was occupied by Romania in 1918, and what came after that, when Romania was deprived of its old territory, was a historical repair.

This request has few chances of getting a favourable vote in Parliament, yet it is enough to fuel the existing fire. Despite the political and diplomatic attempts to calm the situation, there are tensions between Romania and Ukraine, and people in Romania pay close attention to Ukraine’s behaviour.

The recent dispute between Romania and Ukraine started when the minister of Transport in Romania announced data showing Ukraine had dredged Bystroye Canal for economic purposes, thus endangering the very existence of the Danube Delta. Ukraine forbids the Romanian authorities to measure on Bystroye, but they allowed measurements on Chilia Canal at the border between the two countries. The measurements show that Ukraine secretly dredged until it reached 9 meters in depth, 2 meters more than Romanian authorities knew. This means that Bystroye Canal could have been dredged similarly, which, according to specialists, could endanger Danube Delta.

The presence of wealthy Ukrainian refugees in Bucharest doesn’t help from this perspective, and the help the Romanian state offers the refugees is another discussion topic that animates the society.

Also, the fact that the Romanian minorities in Ukraine don’t benefit from the same rights the Ukrainian minority has in Romania is another preoccupation of the Romanian politicians.

Unfortunately, our Romanian brothers in Ukraine do not have the right to learn in their mother tongue; there is a risk of losing their cultural identity. Instead, at Sighetul Marmației, a high school teaches the Ukrainian language. We note the lack of the principle of reciprocity, a principle applicable in international law (principle of international relations, enshrined in agreements, treaties and legal assistance conventions, according to which the beneficiary state of the treatment applied by its partner undertakes to provide it with identical treatment or equivalent); thus the ethnic Romanians from Ukraine do not have a representative in the Kyiv Parliament, while the Ukrainians from our country have a representative in the Romanian Parliament.

Reasons exposed in the law initaitve of SOS Party

Yet, not all agree that Ukraine should be “bothered” during this period, as it is under attack. This and the international pressures from the allies don’t offer any chance for such laws.

Apart from that, Romanian diplomacy labels any such attempts as coming from Russian propaganda. Recently, when one Romanian politician criticized the minister of Foreign Affairs for failing to get Romania admitted to Schengen, he was labelled as “Russia’s spokesman”. “I feel like Sputnik criticizes me”, the Romanian minister Bogdan Aurescu tells the journalists when he found out the Liberal Party Vice-president Rares Bogdan criticized him. This is why this initiative is likely to be labelled as coming from Russian propaganda as well.

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The official visit was another opportunity for European officials to try and appease the people. Also, Metsola reassured Romania has the support of the European institutions, including the European Parliament.

During her speech in the Romanian Parliament, she made an emotional appeal. She asked the Romanian people not to give up on Europe:

I am here, in Romania, today, at this deeply symbolic time, with one message, one appeal: do not give up on Europe! Do not give up on us!

Now, when things are not necessarily as clear as they were two weeks ago, when the shine on rhetoric has been shaded by events, when corruption scandals of a few occupy newspaper inches and tv minutes at the expense of the long hard work of the many.

When it seems that promises long ago made are ignored at the expense of narrow, small, national considerations. When those for whom the European Parliament, just by existing, is a threat, will jump on any of these issues to push more and more people to the comfort of the fringes and extremes.

That is when we are called upon to lead. That is when we have to stand up and stand together – when it is hard, when it is easier to sit back down.

Roberta Metsola in the Romanian Parliament

Metsola also mentioned that Romania had been ready to join the Schengen area for more than ten years and would do it soon.

Is Roberta Metsola afraid that the Romanian boycott of Austrian brands is only the spark igniting nationalists and anti-European feelings in Romania? It might be, as sometimes such movements reach tipping points and cannot be reversed anymore if it’s too late.

Her intervention can be watched in the following video from 15:00 onwards:

The emotional appeal of the EP’s President comes at a delicate moment: the Romanian people are utterly disappointed with the denial of entering Schengen, especially when all the technical conditions have been long ago fulfilled. More than that, it was only one country opposing Romania: Austria. This made Romania withdraw its ambassador from Vienna. Also, as retaliation for the negative vote, Romania initiated the so-called #BoycottAustria movement, and Romanians started boycotting the Austrian brands.

This will favour the nationalist and the anti-European movement in Romania, one of the countries which had huge hopes when joining the EU. This is why European officials try to calm down the voices asking for revenge, as this sort of undiplomatic approach to the scandal will only divide Europe even more.

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Romania made sufficient concessions to receive the much-desired Schengen area admission, however, it seems to be not sufficient enough when international interests are at stake, ever-posing obstacles and opposition at the final decision-making. The Romanian MP had enough and announced that he has no intention of following the directives about the appropriate use of diplomatic language while discussing the Schengen entry matter.

“I refuse to consider a failure of Romania’s accession to the Schengen area by the end of the year. Or the scenario of postponement until another suitable moment. Two countries are currently opposed: the Netherlands and Austria, with the mention that the Prime Minister of the Netherlands is very agitated these days with phones to widen further the club of the two countries full of issues, who would go into instant withdrawal without the daily overdoses of Russian gas and Colombian cocaine.”

Pavel Popescu, MP of PNL party and head of the Defense Committee

Popescu stated that he would not comment on what Romania has done in the past to reach this position but that if the dispute results in Romania still not gaining access to enter the Schengen area by the end of the year, he promises to do the same thing he did with China in 2019. In the same way, he announced to prevent Chinese investments from reaching productive sectors in Romania and kept to his word, he would devote the final two years of his term to enacting laws and engaging in political action that would specifically target Austrian and Dutch businesses and interests (which are essentially Russian) that are present in Romania.

The only difference in this context, is that Popescu is not alone in this opinion and actions. Many of his parliamentary peers from his generation are prepared to join him.

”I know the two countries’ ambassadors will send this post home to headquarters, and they do well. Because it’s not a political threat, but just a firm promise that some of us, who didn’t put our hands in the “honey jar” with these companies because we love our country, are a bit fed up. P.S: I’m not accepting diplomacy tips until December 8th. I am voted politically, I am not a diplomat”.

Pavel Popescu

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”We are not investigating prices, but whether there were agreements between some actors on the market regarding ROBOR”.

Yesterday on the 3rd of November, Bogdan Chiritoiu, the President of the Competition Council, stated that his institution is conducting examinations of the country’s biggest banks about the ROBOR Index. To tell it short, ROBOR is the index that calculates the rate at which banks are willing to lend money to other banks. The checks are being made to discover whether some major bank figures made any secret agreements to increase this rate without justifying the real value.

”[…] the analysis of the conclusions will certainly take some time. At the moment, I can only confirm, I understand that it came from the companies, which surprised us, we are not used to companies announcing that they are being investigated by the Competition Council, I don’t know why they did it. In any case, I confirm that since yesterday morning checks have been taking place based on our legal procedures, with judicial authorization”

Bogdan Chiritoiu to the Romanian Parliament

The president of the Competition Council stated that he found some evidence from the market, however mainly self-reported, so he decided to pursue the investigation further and see what actions needed to be taken. He reiterated that the investigation is not about pricing trends and that the Competition Council is aware of the market’s normal fluctuations of the prices and interest rates metrics. Especially now, during the current double-digit inflation when interest rates are involuntarily increasing, the focus is not on their rise per see but rather on whether any market actors have agreed to raise the rate above what is reasonable in this environment.

“If there is evidence of violation of the law, then we will apply sanctions, after giving the companies the opportunity to defend themselves, obviously. If we are not convinced by their defenses, we will apply sanctions like any other company. […]Obviously, during the investigation we will consult with the Regulatory Authority, as they have the best expertise in the Romanian state regarding the banking sector. But the investigation is based on our analysis, it is not related to any notification received from another institution. […] It is not limited to ROBOR, we are also looking at other things”.

Bogdan Chiritoiu, Presdient of Competition Council

It was specified that the investigation will take anything up to two years and if needed possibly even longer than that.

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The representative of the Sustainable Development Department within the Romanian Government, Laszlo Borberly, was also present and raised important issues concerning the problem of the legal implementation of solutions that never go through or are partially implemented. One such problem was regarding the rightful and sustaining financial allocation per local in the country.

“Unfortunately, I do not comment on what happened with this strategy, I can tell you that it was not applied in practice. We had a very good strategy in 2008, it was the work of about 100 important people in this area and, again , to put it diplomatically, it has been partially implemented[…]”.

Laszlo Borberly, Head of Sustainable Development Department Romania

Borberly mentioned the meticulous process and all the prestigious people involved in the decision-making towards finding solutions and creating the necessary documentation to sustain the initiatives of the 2030 agenda. He tried to emphasize that we are among the few European Union countries that have such documents present or intended to be presented and implemented and that by 2023 there will definitely be an action plan in place. His speech indicated towards the dedication to offer the necessary and legal support the state has to provide for its people, and also the obstacles faced by mainly the lack of support from authoritarian and parliamentary bodies.

”[…] we will also provide a subcommittee to sustain and aid the two Chambers of the Parliament with a monitoring team on this area of ​​sustainable development, in order to record and take note everything that moves around us, how, at what stage we are, when, why and so on.”

Head of Sustainable Development Department Romania

He stressed the value of the partnership with the Parliament in light of the fact that the 2030 Agenda for Sustainable Development cannot be implemented without political will and support, and that the same situation from 1999 would repeat without the imperative actions.

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The sex education law, modified into ‘health education law’, was adopted on June 23 by 224 votes to 1, with 49 abstentions.

The law stipulates that health education may only be introduced in schools beginning in the eighth grade and with the parents’ written permission.

Romanian President Klaus Johannis contested the normative act before the Constitutional Court, but after the Court overruled his objections, the President ordered the bill back to Parliament for revision. The president urged the Romanian Constitutional Court to declare that the law on protecting and promoting children’s rights is unconstitutional as a whole and contested the requirement that sex education be taught in schools only with parental approval.

What started the controversy?

The term “sex education” lifted spirits during the voting, especially among the Social Democratic Party and the Alliance for the Union of Romanians Party lawmakers who teamed up against Union Save Romania Party lawmakers who disagreed that the bill should be referred to as “sexual education” rather than “education for health.”

It must be mentioned that Romania is the top European country when it comes to teenage motherhood. According to a Save Children Romania study, almost a quarter of the European teenage mothers are Romanian. Many disputes have arisen between the parties and their members, contradicting each other if this law will solve the situation or worsen it.

The idea to make this law mandatory, but with parental permission, was put out by the Ministry of Education. Currently, health education classes are optional. According to data from the Ministry of Education, only 7-9% of students in each class (from first to twelfth grade) choose to enroll.

There is an endless debate around the ‘sex education’ subject in Romania. The truth is that no matter how you put it, this situation becomes inappropriate. If it will be effective remains to be seen, but the focus in the Romanian education system should be on improving the system by encouraging young people to learn and continuing their studies, not creating controversy. Maybe in the future, the Minister of Education will also think about a project to modernize schools or solve the problem of school dropouts, it would undoubtedly be necessary.

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