Romanian Govt Wants More Flexible Approach To Regulation Freezing Public Sector Hiring

Romania’s Government wants a more flexible approach to the rule whereby only one in seven vacant public sector positions may be filled next year, with a view to applying it at a higher level, and not for each public institution, so as to unfreeze hiring in sectors where staff shortages become acute.

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The new measure, which amends a normative act that has frozen hiring in the public sector over the past three years, is included in the latest letter of intent the Government negotiated with the International Monetary Fund.

Romanian authorities also pledge to cut staff spending below 7.2% of the gross domestic product and still apply the norm on filling just one in seven vacant positions, but with a more flexible approach.

"Public employment reductions will continue with the policy of replacing only one out of seven employees; however, we will implement it with more flexibility, by applying the rule at a sectoral or higher level rather than for each institutional unit. This flexible approach will allow elimination of some bottlenecks in sectors where problems with staff shortages are becoming acute, as identified by the recently conducted functional reviews," reads the letter of intent obtained by MEDIAFAX.

Two weeks ago, Prime Minister Emil Boc said the Executive will unfreeze hiring in the health, education and administration sectors next year, if the need for more staff is high.

In 2009, the Government decided, following negotiations with the IMF, to keep public sector hiring frozen and fill only one in seven vacancies. The decision was taken through an emergency ordinance and remained valid in 2010 and 2011.

The Government's fiscal strategy for 2012-2014 states the measure will also apply in 2012 and 2013.

By freezing hiring in the public sector, the Government expects to save 1.72 billion lei (about EUR395 million) next year and RON1.99 billion in 2013.

President Traian Basescu said in October Romania will continue to reduce the number of public sector employees, "especially in public administration". (EUR1=RON4.3397)

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