Romania’s Prime Minister Bolojan Announces Public Sector Job Cuts Amidst Budget Concerns

Romania’s Prime Minister Ilie Bolojan, in office since June 2025, is implementing austerity measures, including a reduction of approximately 10% of jobs within the public sector, in an effort to address the country’s significant budget deficit. The cuts, expected to impact around 13,000 public sector workers by 2027, are part of a broader strategy to optimize state spending.

Austerity Measures and Budget Optimization

The Bolojan government is focusing on three key areas to improve Romania’s budget: reducing operational expenditure – including personnel costs – increasing the efficiency of budget revenue collection, and prioritizing investments. Prime Minister Bolojan emphasized the importance of these measures for long-term fiscal stability.

Scope of the Cuts

According to Minister of Development Atila Cheke, the cuts will primarily affect the central administrative apparatus, leading to a significant decrease in positions within the cabinets of ministers and the offices of elected officials at both central and local levels. However, jobs in critical sectors such as education, culture, defense, police, and hospitals will be exempt from these reductions.

Reform of Local Public Administration

Bolojan has also addressed the demand for reform within local public administration, describing it as a significant area of expenditure employing over 150,000 people. He warned that without personnel reductions, particularly in areas deemed unnecessary, any additional budget revenue could be consumed by rising administrative costs.

Political Background and Leadership

Ilie Bolojan, born on March 17, 1969, has held several key positions in Romanian politics, including acting President of Romania, President of the Senate, Mayor of Oradea, and President of the Bihor County Council. He assumed the office of Prime Minister on June 23, 2025, following a period as acting Prime Minister starting February 12, 2025. He currently also serves as the President of the National Liberal Party.

Romania’s Budget Deficit

Romania currently faces the highest budget deficit in Europe, making these austerity measures a critical step towards fiscal responsibility. The government hopes that by streamlining the public sector and reducing unnecessary expenses, it can stabilize the economy and ensure sustainable growth.