RRI Live!

Listen to Radio Romania International Live

Discontent over the upcoming budget

The state budget for 2021 is not yet ready, although we're 40 days into the new year.

Discontent over the upcoming budget
Discontent over the upcoming budget

, 09.02.2021, 14:00

The state budget for 2021 has been under
constant debate these days, its adoption having been postponed against for next
week. The ruling-coalition Government says the budget will observe a 7% deficit
target, will support economic recovery and will cap unnecessary and excessive
spending of public money. During the pandemic, the budget was strained by high
healthcare costs, and building the new budget is difficult. Coalition leaders
on Monday decided to further cut back on spending. They announced pensions
won’t be going up as planned in September this year, but starting January 1,
2022. In turn, employees in the public sector will see their holiday vouchers
slashed this year. Certain bonuses may also be cut, such as the so-called COVID
bonus, accounting for 30% of the base salary, awarded to employees in the
prefect’s offices. Meal allowances awarded to public sector employees could
also be reduced. Child benefits won’t go up this year, and the authorities are
planning to reduce subsidized transport for students. Liberal leader Ludovic
Orban tried to explain this package of measures, which many see as an austerity
one.


Increasing the pension point is based on a 100% offset of the decreasing
purchasing power as a result of inflation, and increasing the purchasing power
by increasing the pension point by 50% of the increase in the average national
wage. No holiday vouchers will be issued this year, because last year’s
vouchers are valid over the course of 2021 as well.


This announcement added to the
disgruntlement of the hospitality sector, where companies have been severely
affected by pandemic-related measures. Losses in this sector run up to €7
billion, says Daniel Mischie, the president of the Organization of Employers in
the Hospitality Sector in Romania.


Don’t tourism units need help too? Don’t
they need compensations as well? We’re asking why a quarter of our venues stay
closed today. First of all, they lack the financial resources. Secondly, they
lack predictability. This industry accounts for 7% of Romania’s active
workforce. There are 400 thousand people working in various parts of this
sector. We account for 5% of Romania’s GDP. Over the coming three months, the
Government must come up with a solution to offset all the restrictions taken
against this industry. We don’t see this happening. There is no greater urgency
on the Government’s table right now, other than the 400 thousand people waiting
for help.


In turn, students’ organizations have
called on the Government not to cut back on its transport subsidies.
Social-Democrat leader Marcel Ciolacu has accused the coalition of implementing
inconsistent policies and allocating funds randomly to serve their political
clients. (V. Palcu)

European Council Summit (EUCO) on December 18, 2025
Today in the News Friday, 19 December 2025

European financial support for Ukraine

  The European Union leaders convened in a Council meeting in Brussels on Thursday decided to lend Ukraine EUR 90 billion. The meeting, which...

European financial support for Ukraine
Foto: Emil Kalibradov / unsplash.com
Today in the News Friday, 19 December 2025

Dissatisfaction with the minimum wage

The increase in the minimum wage scheduled for the middle of next year has sparked discontent among both employees and employers in Romania. Workers...

Dissatisfaction with the minimum wage
Photo: presidency.ro
Today in the News Thursday, 18 December 2025

Romania’s President in London and Helsinki

Romania’s President, Nicuşor Dan, paid a visit to London, where he was received by King Charles III of the United Kingdom at Buckingham Palace....

Romania’s President in London and Helsinki
Photo: Septimiu-pixabay.com
Today in the News Thursday, 18 December 2025

Financial decisions from the ruling coalition

Romania’s four-party ruling coalition reached an agreement on Wednesday on increasing the minimum wage from July 1, 2026, to 4,325 lei, the...

Financial decisions from the ruling coalition
Today in the News Wednesday, 17 December 2025

Debates on the judiciary

Expected to engage in the debate on serious issues in the justice system, and particularly to spark a serious inter-institutional discussion on the...

Debates on the judiciary
Today in the News Wednesday, 17 December 2025

The Green Deal, a step backward

The European Union is abandoning its goal of imposing a total ban on sales of new cars with gasoline or diesel engines starting in 2035. According to...

The Green Deal, a step backward
Today in the News Tuesday, 16 December 2025

Motion of censure, rejected

The pro-European coalition government led by liberal Prime Minister Ilie Bolojan has passed the test of a new motion of censure in Parliament. The...

Motion of censure, rejected
Today in the News Tuesday, 16 December 2025

The 1989 Revolution started in Timişoara

  Forced in at the end of World War II by the Soviet occupation troops, the communist dictatorship in Romania lasted for almost half a century...

The 1989 Revolution started in Timişoara

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company