Prime Minister Nicolae Chuke announced that on Friday the government will pass the so-called austerity decree, which will, among other things, “reduce by 50% the positions of advisers among civil servants”. Government sources said on Wednesday that “about 500 posts of personal advisers to high-ranking individuals will be abolished”.

• “We will not make a decision at today’s Government meeting. On Friday, we will hold a meeting of the Government to adopt this order. We felt it was appropriate to provide the necessary time for transparency, debate and, finally, to have all the elements to ensure that we make the very right decision.” said Suuka.

The Prime Minister noted that the law provides for a 10% reduction in spending on goods and services, namely on cars, furniture and office equipment.

Another measure is to reduce by 50% the positions of advisers among civil servants and to limit a maximum of 2 mandates for one person in administrations.

• “For this year, recruitment to state institutions and authorities will also be temporarily suspended. Exceptions are the spheres of education and health care, which we consider a pillar for the development of society,” said the Prime Minister.

Another measure is the introduction of a short supply chain from the farmer to the beneficiary.

• “We have analyzed and believe that the smaller the number of intermediaries, the more we support the manufacturer and ensure a fair price for consumers,” Chuke said.

All measures with which the government hopes to save more than 5 billion lei, although the budget hole is four times larger

The Ministry of Finance has published an austerity order, with which it hopes to save 5.3 billion lei, given that the officially announced budget deficit is 20 billion lei.

• Project GEO Savings Decree 2023

10 austerity measures taken by the government

1. Costs for goods and services must be reduced by 10%.

• There is an exception: accordingly, expenses for medicines and sanitary and hygienic materials, for medical services, for expenses for health care activities and programs, as well as in the case of expenses related to units of pre-university and university education.

2. State authorities and institutions, including those with their own income, will no longer be able to buy, rent or lease cars, as well as furniture and office equipment.

• Where such goods are needed, redistribution will have to be carried out, including from other institutions. As for the ongoing public procurements, they will be able to be completed.

3. Freeze state employment.

• In well-founded cases, the holding of Olympiads or exams may be approved by a memorandum approved at a Government meeting.
• For positions for which a written examination of competitions or exams or a practical examination was carried out, the procedure for their employment may be extended.
• Executive positions of civil servants may be held temporarily, without the obligation to hold a competition, with prior notification of the National Agency for Civil Service 5 days before the event.

4. Employees with the academic title of doctor receives an allowance for the academic title of doctor in the amount of 50% of the level of the minimum gross basic salary in the country, which is guaranteed in a payment provided monthly, only if he performs his activities in the field in which he holds the position and if the job description contains a set of objective and quantifiable attributes that allow a monthly check of how its activities are additionally capitalized.

• The size of the official salary of this allowance is not taken into account when determining the maximum amounts of allowances, compensations, bonuses, bonuses and allowances.
• Within 30 days from the date of entry into force of the emergency decree, the heads of state authorities and institutions, regardless of the form of funding and subordination, are obliged to issue an order to amend the job instructions.

5. Amounts withheld in the ratio of 10% to the state budget, to the state social insurance budget and to the unemployment insurance budget are canceled during the first budget adjustmentexcluding investment costs, costs with state reserve stocks and mobilization and costs related to civil compensation.

6. In 2024, the Agency for Quality and Marketing of Agricultural Food Products will be established. Basically, by order, this postponement is for 1 year.

7. Within 24 months from the entry into force of the extraordinary resolution, customers who award public procurements, the subject of which is agro-food products, apply the criterion of awarding the best ratio of price and quality..

• The weightage for the quality assessment factor will be 70% of the total score and consists of: 50% for the supply chain sub-factor and 20% for the presence of a veterinary permit/registration and food safety or phytosanitary certificate or certificate of origin, as the case may be, and compliance with the legislation on tracking agri-food products.

8. A member of the Central Committee of a maximum of two state-owned companies

• In 2023, employees of state bodies and institutions can hold the positions of a member of the board of directors and/or a member of the supervisory board of a maximum of two state-owned enterprises or in the management bodies of other organizations belonging to the state or administrative units. – territorial, the location of which is on the territory of Romania.

9. After the entry into force of an emergency resolution, the Government may adopt draft regulations/public policy documents, the application of which leads to a decrease in revenues or an increase in budget-approved expenditures, only if they are accompanied by a financial report.

10. Changes in the number of positions in the Cabinet of Ministers and the office

The maximum number of positions in the cabinet, according to the office, is:

• 9 positions of prime minister;

• 6 positions for the office of the Deputy Prime Minister with portfolio, Minister of State;

• 4 positions for the office of the vice-prime minister without a portfolio;

• 4 positions for the Cabinet of Ministers, the Secretary General of the Government and the head of the Prime Minister’s Office;

• 4 positions for the cabinet of the authorized minister;

• 2 positions for the office of the Deputy General Secretary of the Government, the State Secretary and his equivalent in the ministries and working apparatus of the Government and the State Counselor;

• 2 positions for the office of the head of a specialized body of the central state administration in the rank of state secretary;
• 1 position for the office of the deputy state secretary and his equivalent in the working apparatus of the government in the ministries and other specialized bodies of the central state administration;