Patriciu: 600,000 civil servants should be laid off

Publish date: 28-08-2009
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Dinu Patriciu, former owner of the Rompetrol group, said that some 600,000 civil servants should be laid off in order to balance the budget. This is almost double the number of layoffs the government has announced it will effect by 2015.

"Before 1989, the ratio was one civil servant to 40 inhabitants. Now, there is one civil servant for every 13 inhabitants, while truly efficient economies, such as Georgia, have an average of one civil servants to almost 75 inhabitants. Clearly we have a problem, and until this is solved, we will not be able to overcome the crisis," Patriciu said.

The businessman added that an efficient measure related to salaries is to increase and impose the hourly minimum wage, instead of a monthly salary. "People must be stimulated to work as much and as intensely as possible," Patriciu indicated.

According to him, the current salary grid for public employees cannot attract capable people. "A Romanian who studied abroad, who can have an annual salary of more than $100,000 [some €69,833], will not come to work in Romania," Patriciu said.

A measure for helping those to be laid off is the state guaranteeing loans equivalent to three years worth of salary, to help them start their own business or investment. The businessman said that the retail sector is the most profitable industry in Romania, at present. "It is a very important industry, valued at €35 billion. Retail is pulling several industries up behind it, including the construction sector," Patriciu added.

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