Economists: “they exaggerated with the generosity of employing the nations.” We risk a huge crisis from which we only get the IMF

In recent months, since there is talk of austerity measures, economists and employers have warned that they can only produce the expected effects if they are implemented “in the pack”, both for the public and private system.

Programmed prisoners in town halls and county councils aroused extensive controversy
And the fact that, out of the six packs of measures, only five were approved, lacking the reform of the public administration strongly unbalanced the balance at the expense of the business environment, that is exactly the part that pays huge amounts to the state budget, from which the employees of the public administration receive their salaries.
Economist: They exaggerated with the generosity of hiring nations
Economist Radu Nechita, an economy teacher at UBB, told “truth“That these personnel discounts should take into account not only the population in the territorial administrative unit (UAT), but also the revenues that they collect from the taxes and taxes paid by the companies registered in the locality and by the population.
“There should be a greater heterogeneity in terms of the operating mode of the town halls. First of all, you have a number of positions according to the population, but also according to the income collected by the town hall. If you have 100 social workers you do not need many employees in the town hall, only a few people are needed in the specialized department. In the private environment there are companies that with only a few employees keep the accounting of dozens of other companies.
Secondly, how to establish the number of positions in a UAT and with local revenues must be improved. The expenses of a town hall should not exceed a certain percentage of these incomes, the City Hall must be maintained alone, not with money from the state for the payment of the staff.
The idea of tax responsibility must be implemented. Personally, I really think you can. The best proof is the organizational chart, which has a number of swollen positions. It requires coherent criteria for spending public money. Revenue must be taken into account. They exaggerated with the generosity of employing the nations. It's a step to be taken. Personnel expenses must be reduced. Besides, I would like to know to what extent people check when hiring in town halls? Are tested for the ability to use Excel or Solitaire? I think if they were testing it now, half drops“, Radu Nechita told”truth”.
Negrescu: We are witnessing a budget scam
For his part, the economic consultant Adrian Negrescu told “truth“That, unfortunately, we are witnessing a budget scam.
“Unfortunately, we are witnessing a kind of budget scam exercise, in which the state reform is, again, the subject of white.
To restructure themselves but not to change anything – this seems to be the motto of populist politicians who treat with a disarming unconsciousness the country's budgetary situation, an extremely difficult one“He said.
He explained that, after the first 7 months of 2025, the deficit is 5 billion higher than last year and the state's expenses continue to increase, “And if we do not tighten the belt, we risk shattering the reliable haze granted by what investors.”
“And the effects will be tailor-made. We risk to wake up in a huge crisis from which only the IMF, with even harsher measures, such as VAT to 25%, of salary tax to 20%, the reduction not freezing the salaries of the budget. We play with the fire, mimicking the reforms, What Bolojan is trying now is just to reduce several billion of state spending, not to make an administrative reform. It is a measure of damage, not a structural one, this under the conditions in which we are in the worst financial-budgetary crisis of the last 17 years.
Many of the positions expected to be cut anyway were not occupied by anyone, they were just budgeted. Overall, only a maximum of 10-13 thousand people would be made available, which is a small number related to the necessary size of the public appliance ”, Negrescu said for “truth”.
Bolojan: Administrative reform is absolutely necessary
In fact, Prime Minister Ilie Bolojan explained on Tuesday in a press conference that is the stake of adopting the administrative reform, which created disputes in the ruling coalition.
The prime minister explained that the package 2 reduces the privileges in the public sector, strengthens the collection and restores the equality of treatment between citizens and between companies.
Only the package 2 had to be completed by the sixth, related to the administrative reform, but did not reach an agreement in the coalition.
“On the expense component I would like to insist on the big blocks, because the public administration gathers over 150,000 people, part in their own appliances, part in social assistance.
If we do not control the state's expense area, we risk that everything that is extra will go to personnel expenses and the year we will wake up in the situation now.
At the local public administration, the reform is absolutely necessary because the town halls cannot bear the personnel expenses from the income they receive. And if it cannot mean that it exists for employees, not for citizens.
The package on the administration had 3 important directions: the increase of the administrative capacity, the decentralization part, the increase of the efficiency of the local administration.
You have heard different discount digits applying to one area or another. Our administration is dimensioned on the basis of a maximum number of positions, compared to the number of inhabitants. It is the only area where the government can act.
Many mayors have calculated their organizational chart under the maximum number of employees.
190,000 positions approved in Romania. The total of the positions approved by organizational charts is 164,000 positions. Actually occupied there are 130,000 positions.
So we have 32,000 vacancies or unoccupied positions, so if you reduce 25% you do not affect anything, because you abolish positions that do not exist, they have not been set up.
I cannot do this, I proposed to do a correct analysis of the local administration in Romania.
You will see on each county and locality how many positions have been approved, what are the simulations of personnel discounts and who will have to make discounts ”said Ilie Bolojan on Tuesday.
He explained that there are three assumptions of work:
– If we want an effective 5% discount it means we should reduce the maximum number of positions by at least 30%. Over 3,200 administrative units should reduce posts in 1,000 because they have oversized staff
– If we make a 10% discount it would mean a reduction of about 40% to effectively reduce. In half of the UAT, the staff should be reduced.
– 15% discount requires a 45% discount on the maximum base, ie 60% of the UAT must make an effective personnel reduction.
The counties that would lose the most personal
Overall, the effective reduction of the number of positions occupied would be only 13,098 out of the 128,884 positions, ie only 10%, which would affect half of the administrative units in the country – 1,655 UAT of the existing 3,228.
According to the Government data, consulted by “truth”, Among the biggest positions of positions would be the following counties and Bucharest:
– Arges It should reduce 649 occupied positions, out of 58 by UAT (territorial administrative unit), which would mean a 16% cut of the number of occupied positions;
– Suceava – 627 cut posts, a reduction by 13% in 48 UAT;
– Prahova 724 positions cut, ie 15% of total positions occupied in 68 by UAT
– Bucharest 709 positions should be cut, ie 8% in 4 UAT;
– MEHEDINŢI – 301 positions cut, ie 15% of the total positions occupied in 32 by UAT;
– Galati It should cut 522 occupied positions, ie 17%, in 61 UAT;
– Mures – 13% reduction in the number of positions (513 positions) in 56 UAT;
– Dolj – 413 positions cut, a 10% discount in 65 UAT;
– Hunedoara – 450 cut posts, a reduction by 14% in 46 UAT.
Overall, the effective reduction of the number of positions occupied would be only 13,098 out of the 128,884 positions, ie only 10%, which would affect half of the administrative units in the country – 1,655 UAT of the existing 3,228.
The county councils with the most dismissal
– Argeswith 681 occupied positions could dismiss 162 employees (40%discount) or 192 employees (45%discount)
– German – should reduce 161 positions out of 512 occupied,
– Mures – should reduce 135 positions of 647 occupied;
– Prahova – should reduce 130 positions of 695 occupied;
– Braşov – It should reduce 123 positions of 639 occupied.
Municipalities with the highest personnel discounts
– Ploiești City Hall – It could be expelled at least 217, maximum 248 employees of the 904 existing.
– Pitești City Hall With 808 busy positions could be expelled 202 employees (40%reduction) or 237 in case of 45%reduction.
– Tîrgu Mureș City Hall It could be dismissed at least 187, maximum 218 employees out of the existing 717.
– Suceava City Hall At least 178 could be released, maximum 208 employees of the 678 existing.
– Baia Mare City Hall It would dismiss a minimum of 151, maximum 182 employees of the existing 706.




