Romania plans major public sector job cuts by 2027

Romania’s coalition government has approved a major decree to cut public administration jobs and reduce state spending, aiming to tackle the European Union’s largest budget deficit.

The plan will eliminate 12,794 townhall positions by 2027 and reduce roughly 10% of jobs across the entire public administration. According to the regional development minister, the cuts are expected to save 1.6 billion lei ($371 million) in 2026 and 3 billion lei from 2027 onward, News.Az reports, citing Reuters.

Mayors can postpone some cuts until 2027 if they achieve a 10% wage cost reduction this year. Jobs already cut by the central government last year will count toward the total reductions. Certain roles, including state hospitals, military, and national security, will be exempt under specific conditions.

Since taking office last June, the coalition government has survived six no-confidence votes, largely related to tax hikes and spending cuts aimed at reducing Romania’s budget deficit and maintaining its investment-grade debt rating. However, internal disagreements over job cuts continue, and the 2026 budget has not yet been approved. Prime Minister Ilie Bolojan said the cabinet will submit it to parliament next week.

The government plans to cut the deficit from over 9% of GDP in 2024 to 6.2% this year, eventually reaching the EU ceiling of 3% by the end of the decade.

To balance austerity measures, the government also approved support programs, incentives, state aid, and tax exemptions totaling about €5 billion ($5.9 billion) through 2032, aiming to stimulate economic growth after the country slipped into a technical recession late last year.

News.Az 

By Aysel Mammadzada