The Impact of Policy Retrenchment in Europe
Edited by Daniel Vaughan-Whitehead
Chapter 12: Romania: A country under permanent public sector reform
During the political and economic transition in Romania, the public sector underwent continuous reform, ranging from measures required to adjust the government sector to the market economy, to those to meet the demands of EU accession, and finally to measures to overcome the crisis. Public sector employment increased significantly, with jobs paid from the state budget increasing from about 800,000 at the beginning of the transition to almost 1.4 million before the crisis, then decreasing again to below 1.2 million. The public sector concentrates about 21 per cent of the labour force and its total wage fund represents about 25 per cent of budgetary expenditure (Voinea et al. 2010). The institutional structure has followed the same path of repeated change, with increases in the number of ministries, agencies and so on and then their restructuring and merging during the crisis.
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