Romania approves major public sector job cuts to reduce deficit
Romania approved a decree on Tuesday to cut ten percent of public sector jobs. This move aims to lower the deficit while exempting hospitals and the military.
The Romanian coalition government approved a decree on February 25, 2026, to cut jobs and reduce state spending across the public administration in Romania 
RO. The measures are intended to lower the country's large budget deficit, which is currently the largest in the European Union. This policy aims to eliminate roughly 10% of effectively occupied public administration jobs.
RO. The measures are intended to lower the country's large budget deficit, which is currently the largest in the European Union. This policy aims to eliminate roughly 10% of effectively occupied public administration jobs.The decree specifically requires townhalls (local governments) to cut 12,794 jobs by 2027. However, these local authorities have the option to postpone the cuts if they reduce their wage costs by 10% within the current year. These measures are projected to save 1.6 billion lei in 2026 and 3 billion lei annually starting in 2027.
