Published by Global Banking & Finance Review®
Posted on February 25, 2026
2 min readLast updated: April 2, 2026
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Romania approved a decree to cut about 10% of public administration jobs, with townhalls trimming 12,794 roles by 2027. The plan seeks savings up to 3 bn lei from 2027 and to narrow the EU’s largest deficit toward the 3% ceiling.
BUCHAREST, Feb 25 (Reuters) - Romania's broad coalition government approved a decree on Tuesday that will cut jobs and state spending across public administration as it seeks to lower the largest budget deficit in the European Union.
Townhalls will cut 12,794 jobs by 2027 at the latest, while across all public administration the measures will eliminate roughly 10% of effectively occupied jobs.
The cuts will save 1.6 billion lei ($371.10 million) in 2026 and 3 billion lei from 2027, the regional development minister told reporters late on Tuesday.
Mayors can choose to postpone cutting jobs until 2027 as long as they reduce wage costs by 10% this year. Job and spending cuts already made by the central government last year will count in the overall reductions, the minister said.
State hospitals, the military and national security jobs will be exempt pending conditions.
Since taking power last June, the coalition government has survived six no-confidence votes, mostly over tax hikes and spending cuts aimed at reducing the largest budget deficit in the EU and preserving Romania's investment-grade debt rating.
But the four parties in the coalition have struggled to agree on job cuts and the budget for 2026 has yet to be approved. Prime Minister Ilie Bolojan said on Tuesday the cabinet will send a budget to parliament next week.
The government must continue cutting the deficit from over 9% of GDP in 2024 to this year's target of 6.2%, narrowing it to the EU's 3% ceiling by the end of the decade.
Also on Tuesday the government approved a series of support schemes, incentives, state aid and tax exemptions to support economic growth with a total impact of roughly 5 billion euros ($5.90 billion) until 2032. The economy slipped into technical recession at the end of last year.
($1 = 4.3115 lei)
($1 = 0.8475 euros)
(Reporting by Luiza Ilie; Editing by Sharon Singleton)
Romania approved a decree to reduce public administration jobs and state spending to shrink its EU-leading budget deficit and protect its investment-grade rating.
Roughly 10% of effectively occupied public administration jobs will be eliminated. Townhalls will cut 12,794 positions by 2027 at the latest.
Authorities estimate savings of 1.6 billion lei in 2026 and 3 billion lei annually from 2027, supporting deficit-reduction goals.
Yes. State hospitals, the military and national security roles are exempt, subject to specific conditions outlined by the government.
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