fbpx Modifica setari cookieuri


Deleting the red lines in order to re-invent Europe

This article was written on April 15 and has appeared in the May 2020 issue of the publication “Cronicile Curs de Guvernare”. As such, it… Mai mult

Surprise in budget implementation for first 4 months: revenues in April were on the rise. Budget deficit – reached 2.5% of GDP

The general consolidated budget registered for the first four months of the current year a deficit of almost RON27 billion, equivalent to 2.48% of GDP… Mai mult

The Monkey in its Labyrinth

Covid is a curse which helps the Romanian economy: it opens no new roads for us but closes the old ones and forces us to… Mai mult

Industrial production decreases for the 8th month in a row. -3.1% in January

According to the data communicated by the NIS, in January 2020, Romania registered a new decrease in monthly industrial production, by -2.4% in gross series… Mai mult

VIDEO / Spring, first Dacia electric model, enters series production as of 2021

Dacia-Renault presented its “show car” Dacia Spring, “which prefigures the first 100% electric model of this brand” and will enter series production in 2021, according… Mai mult

Most generous employer is state: double salary in public sector, triple public-private gap

de Razvan Diaconu , 3.9.2018

Romanians are working harder to maintain an increasingly bureaucratic, inefficient and more expensive administrative apparatus – this is the conclusion of an analysis published on INACO on Wednesday.

Andreea Paul, chairman of the organization, says the evolution of wage indicators shows that entrepreneurship and private work are at a disadvantage in the face of the public apparatus and the situation creates a new type of labour migration: from the school and private sector to the state-owned sector.

By analysing the official INS data, Andreea Paul signals the following series of economic anomalies:

  1. Double salary in the public sector. The net average wage in the public administration reached RON 4,207 in June 2018, double the national average salary of RON 2,115 (according to INS, HERE-LINK), without an increase in the quality of public services. On the contrary, we have the most disorganized and bureaucratic public institutions in the EU. We should be aware that since autumn 2017, official statistics no longer include armed forces or services in the average of the public administration, nor the staff of parliamentary cabinets employed in their own constituencies and paid from the lump sums of MPs. Otherwise, figures would have been even higher for the average salary in the public administration. In reality, gaps between the public and private sectors are even greater.
  2. Public-private gap – tripled. The gap between the public and the private sector has increased threefold, from the average monthly of RON 427 in 2016 to RON 1,285 in 2018 and continues its leap projected to almost RON 1,600 in 2019 (according to calculations based on CNSP data, HERE-LINK). The public sector includes public administration, as well as education, health, and social assistance sectors, but without the armed forces, services and other assimilated areas. Again, the gaps are actually even higher.


  • The gap between average wages of employees in public and private sectors tripled over the last two years, from RON 427 in 2016 to RON 1,285 in 2018
  • Gross average salary in the public sector (RON)
  • Gross average salary in the private sector (RON)


  1. Salary in education, half of that in public administration. Net average wage in public administration is 50% higher than in education, 20% higher than in the health sector, even higher than in the research sector in June 2018.
  2. The most crowded public apparatus in the EU. We have the most crowded European government with 28 ministers, first deputy prime ministers, and a prime minister, respectively with 25 ministries, compared to the European average of 14 ministries. On the government model, public administrations have the same bureaucratic structure. What is even more intriguing is the CNSP’s official forecast that suggests this government’s desire to annually increase the number of public servants by 2022 (AICI-LINK), again against the global trend towards increasing the efficiency of the administration and in contradiction with recent statements of the Finance Minister.
  3. The most poorly digitalised European administration. Increases of wages in public administration would not bother anyone if they were correlated with the real economy and the reduction in the staffing scheme of the public administration by digitalising and optimizing public structures in favour of a decrease in the time spent by taxpayers in contact with the bureaucracy. Or, we have the most poorly digitalised public administration in the EU and the most retrograde procedures, while we have a high-speed internet and a world-class Romanian IT sector.
  4. Wages to the detriment of public investment. Public investments are at historical minimum levels, tax revenues are also collected at historically low levels in relation to GDP, and the share of the social bill in the total budget spending is at historical highs. Budget wage spending is in 2018 at the level of 2009 relative to GDP, contrary to the European and world trends towards reducing the state apparatus. Debt increases invariably in this context.
  5. Over-taxed work in the private sector. We are increasingly taxing the labour, not the capital, in an economy where the base of the active workforce in the private sector should be expanded. More precisely, a Romanian employee works over half a year for the state and the last “tax revolution” added another 5 days a year during which a Romanian average worker works for the state. The day of tax freedom became July 20 in 2018, compared to July 15 in 2017. In other words, we work for the state until July 20 and only starting July 21 average Romanian employees work for themselves and their family. From this perspective, of a working employee, we should analyse the results of the latest tax changes for transferring contributions from the employer to the employee (according to INACO analysis, HERE-LINK)
  6. Under 1% of the European money absorbed for human capital. The effective rate of the European money absorption, below 1% for the Romanian human capital, for regional development and the reduction of inequities by August 2018, out of the EUR 11 billion available to Romania, leaves you perplexed. These are official data, published in August 2018 by the Ministry of European Funds. We can neither invoke the beginner’s excuse from 2007-2014. Reality is serious – in the fifth year of this European financial cycle (2014-2020). Obviously, human capital has been almost totally sacrificed and is not part of current priorities. Facts show that. Caring only for the employees from the public sector, not the Romanian human capital as a whole is justified only by the attempts to collect political dividends. These are catastrophic figures that show the real performance of public decision-makers, with no relation to the respect for citizens. No one else can be blamed. Public pressure will have to be directed towards the real growth in the quality of Romanians’ lives and we should not wait for the “big meow” in 2020 that “we could not do that because others did not let us”.
Mergeți în homepage ›

Publicat la data de 3.9.2018

Lăsați un comentariu


Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult