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February 3, 2023

260,000 “guardsmen” cumulate 40 pc of salary fund

If the salary fund for police, military and intelligence services – estimated at EUR 4 bln – were cut by 30 pc, the state would save EUR 1.2 bln.

The state spends each year some EUR 4 bln to pay the 260,000 civil servants employed by the “special” systems of law enforcement and defense, which do not appear in official statistics, i.e. 38 pc of the total personnel expenses with public sector employees (EUR 10.7 bln), according to projections made by ‘Ziarul Financiar’ newspaper, based on figures released by the Finance Ministry and the National Statistics Institute (INS). By comparing the two sets of data, the newspaper’s analysts have discovered a difference of 260,000 employees whose salaries are a mystery, as the Finance Ministry announced there are 1.36 million civil servants, while INS only “knows” about 1.1 million. This leads to the conclusion that one in five civil servants works in law enforcement and national security – the law enforcement services of the Ministry of Administration and Interior, the four secret services (SRI, SPP, SIE, STS), and the military.

By comparing the sum spent by the state for its 1.1 million civilian employees (EUR 6.7 bln in 2010) with the total salary expenses provided by the 2010 budget (EUR 10.7 bln, or 9.3 pc of the GDP), one can easily see that EUR 4 bln, or 36 pc of the sum, will be spent for just 19 pc of the total number of civil servants. In the absence of official figures, the calculation is verified through the net average monthly income earned by this special kind of civil servants. The EUR 4 bln spent as annual salaries result in EUR 330 M spent each month, equivalent to an average net income of RON 2,700 for each of these 260,000 “special” civil servants. The salary budget for police, military and secret services is twice the budget allocated for the salaries of the 325,000 civil employees of the central and local public administration, which only earn some EUR 2.1 bln a year. If the salary fund for police, military and secret services – estimated at EUR 4 bln – were lowered by 30 pc, the state would save EUR 1.2 bln. Apart from this money, the state budget must also spend EUR 1 bln a year for the pensions of former law enforcement, secret services and army personnel – a sum integrally provided by the budget.

Private economy cannot hire the wave of civil servants to be laid off

The many civil servants to be laid off in the near future have grim prospects of finding new jobs, at this moment. In a recent survey, ‘Gandul’ newspaper found out that most employers do not need “bureaucrats,” do not trust state employees – whom they accuse of being “infected” with bad mentalities, and their concern now is how to lay off their own employees, rather than hiring new staff. There are also some employers who say they would hire a few former civil servants, but only if they are willing to work as unskilled construction workers “until they learn a useful job.” While the large companies operating in Romania claim they either did not take these evolutions into account – such as cement producer Carpatcement – or they are willing to hire on guardsman or unskilled workers positions – such as tire manufacturer Continental, Romanian employers clearly explain why they would not hire former civil servants.

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