June 17 (SeeNews) - Romania's government decided to freeze employment in public administration and state institutions starting July 1 until the end of the year, in order to cut costs and reduce the budget deficit, the labour ministry announced.
According to the government decree, vacant or temporarily vacant jobs in central and local public institutions and authorities, except for unique positions, will not be filled anymore, the labour ministry said in a press release on Thursday.
However, the authorities will be allowed to fill positions for which the recruitment procedure has begun before July 1. In justified cases, the decree makes it possible to fill certain vacancies, if needed.
According to finance ministry data published in January, some 1.262 million people work in the public administration and institutions.
"The measure was necessary to reduce some operating costs of public institutions and authorities, in order to ensure funding for the recently-adopted package of measures for vulnerable groups and for continuing economic activities, in compliance with commitments assumed for meeting the deficit target," the labour ministry said.
The government also said in its decree that Romania is in the excessive deficits procedure applicable (EDP) since April 2020 because it has exceeded the EU's 3% budget deficit threshold set through the Maastricht Treaty.
Romania's consolidated budget was in deficit equivalent to 1.23% of the gross domestic product (GDP) projected for 2022 at the end of April, compared to a budget gap of 1.75% of GDP a year earlier, finance ministry data showed. For 2022, the finance ministry targets 2.9% economic growth and a cash deficit equivalent to 5.84% of GDP.
Romania closed 2021 with a consolidated budget deficit of 6.72%, compared to a budget gap of 9.61% of GDP in 2020.
(1 euro=4.9443)