Romania Fin Min: Public Institutions To Apply Program Targeting Nearly 100,000 Layoffs

Vladescu also said his main concern now is to find ways to create jobs, adding that investment opportunities will be gloomy „for a long time.”

„Investment opportunities will be gloomy for a long time and my main concern is to find ways to untangle budget resources for future investments as much as possible,” said Vladescu, stressing the country has limited budget revenues needed to cover mandatory expenses with pensions and salaries.

About 17,000 Romanians working in the local administration could be laid off in 2010, and the employees close to retirement and those with no children in care are the first to be sacked, according to a draft law cutting back on the number of local administration employees.

Sed Lex union leader Vasile Marica on Wednesday said social partners will hold talks on the draft law cutting back on the number of employees within city halls and local councils, depending on the number of inhabitants in the respective areas.

Romania’s government estimates to cut staff costs paid out from local budgets by 471.5 million lei (EUR1=RON4.1215) in 2010, by sacking nearly 17,000 local administration employees, which will save nearly RON550 million over the next four years.

Spending cuts were calculated in ratio with the total number of 16,742 sacked employees, social security contributions and the average gross wage.

Under the draft law, sacking public servants in the local administration will also reduce by RON241.3 million the revenues collected mainly at the social security budget.