





World Bank recommends Romanian authorities to freeze salaries, stop employing and eliminate incentives
The personnel-related costs are a major and still growing share of Romania's budget. The expenses related to the employees increased 73% between 2005 and 2007, while the Gross National Product only advanced 40%. The increase of expenses was partially caused by the increase of the number of jobs, mainly in local authority institutions and special fields (Police, Gendarmerie, Firemen and others), but the main share is held by the significant wage growth, the report says.
The WB experts say that incentives are not in proportion with the salaries, representing a share of the final income above the EU average, and that this also affects the transparency. The payment for the experience is not correlated with the payment for the output, while the compensations have no grounds in any comparison with the private sector.