The number of positions in each of the local administration units (including those vacant at this moment) will be cut by 30% under an agreement reached by the ruling coalition on November 11, development minister Cseke Atilla announced. This would result in an overall 10% reduction in the number of employees in the local administration – a ratio enforced for the payroll in the central administration bodies as well.
The agreement follows months of negotiations on the law that is supposed to be part of the second package of budgetary measures, to be legislated by the end of November.
The mechanism, which matches the proposals made by the Social Democratic Party (PSD), allows local administration units to temporarily substitute the personnel reduction with a proportional decrease of the overall payroll – but eventually the number of employees in each unit should be reduced by January 2027.
The mechanism is supposed to be enforced as of January 2026 and is expected to generate a budgetary impact of RON 1.7 billion (EUR 340 million, nearly 0.1% of GDP).
The impact of the measure will thus vary among local administrative units, with those that have already reduced employment not required to lay off personnel.
“We have over 700 city halls or county councils where no occupied positions need to be reduced [so nobody will be made redundant]. The mayors have managed their organisational chart correctly in almost a quarter of the localities,” said the minister of development, Cseke Atilla.
He explained that central ministries and agencies must reduce their personnel expenses by 10% in 2026 compared to 2025. Moreover, given that there are no staffing schemes for the institutions at the central level (like those in the local administration), each ministry will have to do an analysis.
“The proposed text agreed upon in the coalition is that […] there should be a 10% decrease in personnel expenses for large units [public spending authorising units]. At some subordinate institutions [of the large units] there may be a greater decrease, at others a smaller one. So a certain freedom is given to the authorising units,” he further explained.
The minister of development told G4media.ro that, in addition to spending cuts, coalition leaders also agreed on other changes.
The local administration units will be allowed to hire part-time civil servants. “This is the case for smaller municipalities that can hire an accountant or a procurement expert part-time,” minister Cseke Attila explained.
Moreover, a person will not be able to buy or sell a property or a car unless they have paid their local taxes.
The suspended driving license can only be regained if the person has paid their fines and local taxes to the local budget. If a driver does not pay their traffic fines within 90 business days, their driving license is automatically suspended.
There is a possibility that a central authority (ministry, for example) will take over the support activity for subordinate institutions.
“The Ministry of Development will be able to provide legal, economic, procurement, or communication activity for subordinate institutions, for example,” minister Cseke Attila told G4media.ro.
iulian@romania-insider.com
(Photo source: Inquam Photos / George Călin)
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