Romanian Ministers Have Three Weeks To Propose Job Cuts, Govt Awaits IMF Approval

"Talks in the Government on the restructuring of the public sector start from the law passed last year, which cut down the number of government agencies, and each minister has to explain how they handled and applied this process," the sources said, adding ministers were given three weeks to bring concrete normative acts reorganizing their respective sectors.

The sources also said the Government is waiting for the International Monetary Fund's approval on cost standards the country plans to introduce in public administration, as a means to keep public spending in check.

Romanian President Traian Basescu said Monday evening, on B1TV, that he will summon the Government to the Presidency headquarters next week to discuss public sector layoffs, saying he hasn't yet seen the promised layoffs meant to reduce the state apparatus.

Last month, Prime Minister Emil Boc asked his Cabinet to prepare the second stage of the public sector restructuring process, to follow last summer's reorganization of government agencies. The move will entail layoffs to lower public spending.

The Government pledged to reduce staff expenses by 0.2% of GDP in 2010, through layoffs in the public sector, in negotiations with the IMF for the disbursement of the third and fourth tranches of a EUR13 billion loan.

In August 2009, the Government decided to reorganize and merge government agencies, so that the country's 223 agencies were reduced to half and 7,800 jobs were scrapped.

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