Romanian government to cut 100,000 jobs

[Syt]

BW: Romanian FM says 100,000 public jobs to go

Romania's finance minister said Thursday that 100,000 jobs in the public sector will be cut as recession-mired Romania makes budget cuts to meet the requirements of its bailout loan from the International Monetary Fund.

Sebastian Vladescu made the announcement as Parliament debates for a fourth day this year's budget, which is crucial for unlocking a euro1.5 billion (US$2.18 billion) installment of an IMF loan. He declined to say where the cuts would be made.

After years of growth, Romania's economy went into a decline last year, shrinking eight percent. The country ran into financial trouble and was forced to seek outside help, and the IMF, the EU and World Bank put together a euro20 billion package.

But the loan was frozen in October after the government was dismissed by Parliament in a no-confidence vote, leading to a period of instability which was resolved after President Traian Basescu was re-elected in December.

Analysts say that the figure does not mean 100,000 people will lose their jobs. Vacant jobs will not be filled and people near retirement age will not be replaced.

[jimmy olsen]

I predict riots.

[Tamas]

If only we would do the same

[Alexandru H.]

I would have kicked out at least 200,000 people from their cushy government jobs. 

[Richard Hakluyt]

How is the general mood and ambience in Romania nowadays?

[DisturbedPervert]

Brits better start boarding up their windows

[Alexandru H.]

How is the general mood and ambience in Romania nowadays?

We had the biggest growth in the EU then the biggest decline. What do you think? 

But we're still sending trains full of gipsies abroad... 

[Richard Hakluyt]

Has it reached the stage where people look back on the good old days under Ceaucescu?

Clearly the recession is a bit of a dampener, though here in the UK very few people I know really care about it very much; the media go on about it but it isn't much mentioned in casual conversation.

[Sheilbh]

I predict riots.

Because they're not advertising for sub-sub-sun-secretaritate whatever in the Ministry of Health?

Something similar's coming up in Belgium.  Apparently they could - though they might not choose to - be able to slash public spending soon because around 50% of civil servants are over the age of 50 and approaching retirement in the next 10 years or so.  If they didn't replace them all it's a big saving

[Sheilbh]

Clearly the recession is a bit of a dampener, though here in the UK very few people I know really care about it very much; the media go on about it but it isn't much mentioned in casual conversation.

I think it depends where you are in life.  Among my friends and other people I know who've just graduated it's a big topic of conversation - but more in a 'sod's law' way.  Plus we're all convinced that we'll be a tough sharp-elbowed generation now

[Richard Hakluyt]

Yeah, the state of the economy is a big deal for recent entrants to the job market. It varies from "sod off!" all the way to "let us throw money at you!" 

One advantage of graduating in a recession is that it makes a slightly odd CV more permissible. So bumming around the world or working in a bar for a spell before settling to the careerist grind is easier.

Once the recession really starts to bite I'm expecting some good popular music to come out of it 

[Zanza]

That sounds like they'll cut them over the next few years.

Germany cut more than 2.3 million public sector jobs in the last 20 years. Of course it's got four times the population, but unless Romania cuts them immediately, 100,000 jobs cut does not seem outrageously much. That said, I don't know anything about the public sector in Romania, so maybe 100,000 is a substantial portion of the total...?

[Tamas]

That said, I don't know anything about the public sector in Romania, so maybe 100,000 is a substantial portion of the total...?

Considering its a post-communist state in East Europe, my educated guess that it is not.

I can't help but envy Romania for having the balls to do this. State employees are like the state's cancer here, eating away a mind-blowing amount of resources, working with such a horrible inefficiency that puts any Balkan nations into shame.

Like, the mass transportation company of Budapest. The bus drivers are on strike because they are not getting earlier promised benefits which are unheard of to anyone at or somewhat above their job level in the public sector (they still get their payraise, mind you, and normalf benefits). The company itself produces almost as much losses every year as the railroads, and the buses in particular are literally falling apart (such a shame, considering that it was our industry to support the eastern bloc with buses).
Funny thing is, that the outer districts of the city have leased bus-running to a private company. And not only they are not on strike, the buses are in top quality because the contract forces the owner to have them at such, or pay fines, and as in any case where there is someone's money at stake (and not the bottomless pit of the state budget), order is kept.

[Crazy_Ivan80]

I predict riots.

Because they're not advertising for sub-sub-sun-secretaritate whatever in the Ministry of Health?

Something similar's coming up in Belgium.  Apparently they could - though they might not choose to - be able to slash public spending soon because around 50% of civil servants are over the age of 50 and approaching retirement in the next 10 years or so.  If they didn't replace them all it's a big saving

lol, it's belgium. Do you think there will be any savings here?
With the walloons having their hands in the moneybags nothing will change until the country is bankrupt, and even then I'm not sure things will change.

[Alexandru H.]

Well, let's bring some numbers...

Until 1989, we had 900,000 people involved in administration. That is without computers, with a big standing army of about 500,000 soldiers, with all the economy in the hands of the state.

We have now 1,400,000 bureaucrats. The big problem is that the power of the state has really diminished since Ceausescu, therefore logic would imply that we need less public servants. My biggest outrage is that in the 2006-2008 period, there were employed 200,000 new people, just because:

a) economic growth
b) necessity of placing political friends in all kinds of useless positions
c) state jobs are still seen by a lot of people as the best and safest way to live your mature years.

One annoyance is that the private sector is simply uninteresting for our mass-media. In 2009, a lot of people lost their jobs and few observed it. But when a certain syndicate begins to argue against any reform in the public sector, journalists simply are ecstatic: there is a chance to talk about the "poor" people. Some of these poor people are the judges who, after losing some stupid monetary monthly bonus, began to strike, even though it was simply unconstitutional.

As I said, I want to see 200,000 bureaucrats losing their jobs in the next 2 years.