Romanian Govt To Stop Funding Local Authorities Unless They Cut Staff Numbers - PM

The Romanian Government will halt the transfer of state funds to the local budgets unless local administrations cut back on the number of employees within the bodies and departments in their subordination until mid-August, Prime Minister Emil Boc said Sunday.

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Boc reminded Sunday, during a videoconference with the county prefects, that local authorities have until August 16 to adopt the new organizational charts, in accordance with the government decision reducing the number of positions in the public sector.

Boc stressed that if local authorities fail to comply and carry out the restructuring process, they will no longer get state funds. He went on to say that the new organizational charts must be sent for approval to the National Agency of Public Servants.

Local administrations in Romania have chosen to turn some of the departments in their subordination into commercial companies so that these companies can take over some of the employees that must be sacked.

Early July, the Romanian Government issued an emergency decree compelling local and county administrations to reduce expenses and implicitly, the number of employees. The decree was published in the Official Journal of Romania on July 2 and came into effect three days later.

Under the decree, prefects had five days to inform central authorities on the maximum number of positions set in accordance with the cost standards drafted by the Government.

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