Prime Minister Ciolacu Introduces Modified GEO to Reduce and Reorganize Budget System

The draft GEO that will reduce and reorganize the budget system has been modified. Prime Minister Marcel Ciolacu acted surgically and introduced new provisions that will allow heads of institutions to make staff available through a decision.

CONSULT THE NEW GEO HERE (*Note: this GEO has not yet been adopted, being a working document of the Government)

For example: according to this GEO, many institutions will merge. Larger institutions will swallow smaller institutions with a similar role. The new head of the institution can decide to dismiss a head from the absorbed institution, if that position was already filled.

This will lead to the situation where thousands of budget workers will be laid off as a result of the merger.

(6) Personnel with management positions relieved of their duties as a result of the reorganization of the activity of the entities provided for in paragraph (2) benefit from the rights provided for by law, including the provision of an executive position within the entities where they carried out their activity. If, at the level of a reorganized organizational structure, the head of the public entity decides to offer an executive position for the personnel with management functions released as a result of the reorganization of the entities referred to in paragraph (2), and there are no vacancies in that structure, it will be possible performed only on the basis of an internal competition, organized on the basis of a methodology approved by the head of the public entity, for all public execution functions in the organizational structure. As a result of the organization of the contest, the effective number of occupied positions is reduced by at least one. Dismissed executive staff will benefit from all salary rights and other rights provided by law. If the head of the public entity does not decide to offer the staff with management functions an executive function, they are dismissed and benefit from the salary rights and other rights provided by law for such situations;

Unique positions remain unattainable

Another amendment to the GEO clarifies the situation of single positions in an institution (director, general secretary, chief accountant, etc.). These positions will not be affected by the rule that provides for a minimum of 10 subordinate employees.

f) existing unique positions in:

f.1.) public institutions and authorities, as defined at Art. 2, para. (1), point 30 of Law no. 500/2002with subsequent amendments;

f.2.) local public institutions, as defined in Art. 2 para. (1) point 39 of Law no. 273/2006 on local public finances, with subsequent amendments and additions.

Discontinued posts cannot be re-established

Another extremely important change stipulates that positions that have been abolished can no longer be re-established. This provision aims to prevent the situation in which a head of an institution cuts positions from the organization chart and after the tide passes returns to the old organization chart.

”(8) The vacant, unfilled, unstaffed positions in the states of functions approved according to the law canceled according to the provisions of paragraph (1) can no longer be re-established;

(9) Newly established positions within the organizational structures can be established starting from July 1, 2024 only for thoroughly justified cases and with the necessary approvals according to the law at the central level through a memorandum approved by the Government of Romania or as the case may be at the local level only with the approval of the local public authorities/ counties as the case may be;”.

2023-08-10 08:55:59
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