Romanian government approves pay rise for some civil servants amid protests

4 months ago 14

Romanian civil servants falling under certain categories will receive a 10% pay rise this year compared to December 2023, government spokesman Mihai Constantin said on Thursday, despite the country being under the excessive deficit procedure since 2021.

The salary increases will be implemented in two stages -in June 2024 and September 2024- coinciding with local, EU, and presidential elections. They will benefit certain categories of civil servants, including those in culture, diplomacy, government, parliament, and local public administrations.

The decision comes amid recent protests by civil servants in various state institutions. According to Constantin, it is expected to have a budget impact of 1.2 billion lei (around €241 million) in 2024.

However, he could not specify the source of funding for these salary increases, telling journalists that “the finance minister must know”.

Romania has been under the excessive budget deficit procedure since 2021, and the European Commission has urged the government to reduce its public deficit to 2.9% of GDP at the minimum by 2024.

However, delays in fiscal consolidation, exacerbated by external shocks and increased government spending, have led the European Commission to revise its estimates for Romania’s public deficit to 6.9% of GDP in 2024 and 7% of GDP in 2025.

Despite the government’s approval of a 10% pay rise, unions representing civil servants in the Senate and Chamber of Deputies and government employees have expressed their dissatisfaction with the rise.

Romanian Prime Minister Marcel Ciolacu, surprised by workers’ discontent, has asked ministries to slash staff numbers to raise money for salaries for deserving individuals.

“I have observed the discontent, even within the government, employees are protesting, citing heavy workloads for salaries of around €1,000 per month. I believe that the government and parliament can explore flexible personnel restructuring solutions,” Ciolacu added.

(Catalina Mihai | Euractiv.ro)