Romanian Govt, President Agree To Restructure Public Bodies By September 1

Boc said during a meeting with Kristalina Georgieva, European Commissioner for International Cooperation, Humanitarian Aid and Crisis, that wage rises in the public sector starting January 1 depend, to a large extent, on the completion of the state institution restructuration process.

Basescu said Thursday on the public television that he hopes the deadline set for September 1 would be observed. The head of state stressed that staff spending must be reduced.

Boc announced Wednesday the Government decided to reduce to two the number of state secretaries in each ministry, except those of Interior, Foreign Affairs and Finance, which will have three secretaries of state. The Executive also decided to reduce by 50% the number of deputy prefects, so that each county will have only one such position. Boc said the sacked deputy prefects will not be reemployed as Government inspectors.

The Government implemented a series of measures, such as cutting state employees' salaries by 25% and increasing the VAT to 24%, in order to slash public spending and reduce the country's budget deficit, as agreed with the International Monetary Fund. Ministers were also tasked with restructuring the public institutions they lead, in order to further reduce public spending.

Late-June, Boc urged ministers to begin the procedures to restructure the public bodies they lead, pointing out that this process, which could include layoffs, can be initiated through emergency decrees, if the law allows it.

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