The governing coalition failed today to reach an agreement on the reform of local public administration, the only project from Reform Package 2 that has not been agreed upon so far.
After five hours of discussions, the coalition meeting ended without consensus. Political sources stated to HotNews and TVR Info that the measure has been postponed until September 15.
According to Digi24, citing political sources, the measure was postponed because PSD opposed the proposed cuts.
Thus, Prime Minister Bolojan will take responsibility before Parliament for the remaining five projects in a session scheduled for Monday, September 1, at 7:00 p.m.
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What the local administration reform entails and why there are disputes within the coalition
The initial project aimed at cutting over 40,000 positions in central and local public administration, with an estimated financial impact of 2.2 billion lei annually, according to the Minister of Development, Cseke Attila. The reductions are distributed as follows:
- over 30,000 positions by applying a reduction percentage of 20–25% in town halls, county councils, and prefectures
- over 6,000 positions through restructuring the offices of dignitaries, from the Prime Minister to deputy mayors
- around 4,000 positions in the Local Police
In addition, the reform provides for capping the number of employees in local administration based on the population of each locality, based on data provided by the National Institute of Statistics. Local authorities are expected to adopt the new organizational charts within a maximum of 30 days from the communication of the cap.
But in today's meeting, according to Digi 24, Ilie Bolojan proposed cutting approximately 70,000 positions from town halls and county councils.
TVR Info also reports that Ilie Bolojan suggested that the 25% layoff rate in local public institutions should increase to 45%. The 25% rate did not mean savings for the state, according to the Prime Minister, because not all local public institutions had a complete staff structure.
However, PSD insisted only on cutting 40,000 positions, leading to disagreements. It appears that even UDMR did not agree with Bolojan's proposal.
Discontent among mayors
Cseke Attila explained that the measures in the local public administration reform aim to streamline the administrative apparatus and reduce pressure on the budget: "Those who have all positions filled will need more substantial reductions, including reorganizations, in the sense that some employees in the budgetary apparatus will have to leave."
These provisions have caused major discontent among mayors, regardless of party affiliation, who argue that the reorganization and capping of the number of employees will affect the functioning of local institutions. These pressures explain the reservations and disputes within the coalition, which have delayed the adoption of the project.
The government adopted five out of the six projects in Package 2 of measures on Friday – regarding magistrates' pensions, healthcare, state-owned companies, regulatory authorities, and taxation.
After sending these projects to parliament on Friday, it was decided that the government will take responsibility on Monday for the second package of measures prepared to reduce the budget deficit.
The joint session of the Chamber of Deputies and the Senate for the government's assumption of responsibility will take place at 7:00 p.m. The deadline for submitting amendments is Monday by 9:00 a.m.