Romania's Ministry of Development plans to eliminate over 500 jobs as part of a fiscal austerity initiative.
Streamlining the Romanian Development Ministry: A Closer Look
In a recent move, the Romanian Development Minister, Cseke Attila, has announced plans to reorganize the ministry by slashing over 500 positions, primarily managerial roles, and dissolving two subordinate institutions: Agenția Națională pentru Locuințe (ANL) and Institutul Național de Administrație (INA).
This reorganization forms part of a larger strategy among state institutions to trim operating expenses. As Cseke Attila explained, "Through this measure, we are reducing staff by over 16%, eliminating 512 positions, of which 74 are currently occupied, reducing the number of Board of Directors members by two-thirds, and scrapping 21 managerial positions."
Initially, the ministry's staff count comprises 966 positions, distributed across the Ministry of Development, the National Housing Agency, and the National Institute of Administration. Once the restructuring is complete, only 808 positions will remain.
The National Housing Agency, responsible for constructing social housing, and the National Institute of Administration, which offers professional training for public officials and public sector employees, will be phased out. Their duties will be integrated into the ministry, with the aim of saving RON 22.6 million (approximately EUR 4.5 million) annually.
Notably, during his first 100 days in office, Cseke Attila managed to eliminate inherited debts worth RON 6.7 billion, establish clear investment priorities, double the absorption rate of European funds, abolish certain service fees for citizens, and revitalize seismic safety and nursery construction programs. "In these 100 days, we have set the ministry on a more efficient course, now it's time to continue driving Romania's development while streamlining our operations," Cseke Attila declared.
Additionally, the ministry plans to align the salaries of directors at another institution, the National Investment Company, with the salary system for public employees. The salary cap for seniority and management bonuses will be capped at 40% of the base salary, with annual bonuses capped at two gross salaries per year. Moreover, retired bonuses – which were prevalent only at CNI up until now – will be scrapped.
In essence, Cseke Attila's reorganization aims to not only streamline the Romanian public sector but also inject transparency, efficiency, and effective service delivery. A bold step in the right direction, indeed!
(Photo source: Cseke Attila on Facebook)
- The Romanian Development Minister, Cseke Attila, plans to integrate the duties of the National Housing Agency and the National Institute of Administration into the ministry, aiming to save RON 22.6 million (approximately EUR 4.5 million) annually.
- As part of his reorganization plan, Cseke Attila has announced a reduction in managerial roles within the ministry, with 21 managerial positions to be scrapped and the number of Board of Directors members reduced by two-thirds.
- In an effort to align financial practices within the ministry, the salary system for directors at the National Investment Company will be adjusted to match that of public employees, with certain bonuses capped at specific levels and retired bonuses to be abolished.
