Minister of Development Announces Institutional Reorganization and Budget Savings After First 100 Days

“In the first 100 days of my term as Minister, we have cleared all inherited debts, totaling 6.7 billion lei,” announced Cseke Attila, Minister of Development, Public Works and Administration, during a press conference marking the 100-day milestone and the launch of a ministry-wide reorganization.

Despite entering a phase of cost-saving and streamlining, the Ministry will continue to drive development across Romania, the Minister emphasized. As part of this reorganization, two of the six public institutions under the Ministry’s authority will be dissolved and absorbed, with their responsibilities maintained within the Ministry’s structure.

“With this measure, we are reducing staffing by over 16%, eliminating 512 positions—74 of which are currently filled—including 21 management roles, and cutting the number of board seats by two-thirds,” Minister Cseke stated.

Currently, the Ministry of Development, the National Housing Agency (ANL), and the National Institute of Administration (INA) have a total of 966 positions. Following the restructuring, this number will drop to 808. The Boards of Directors of ANL, the National Investment Company (CNI), and the National Agency for Cadastre and Land Registration (ANCPI) will also be reduced from 27 members to 10.

Eliminating Retirement Bonuses and Excessive Allowances

The National Investment Company (CNI), one of the Ministry's key institutions, is responsible for implementing some of Romania’s largest development projects, with a proven track record of performance and results.

However, salary policies at CNI will be revised. Executive salaries, including that of the General Director, will be aligned with public sector pay scales. Seniority and leadership bonuses will be capped at 40% of the base salary, and annual bonuses will be limited to two gross monthly salaries.

“Neither the Ministry of Development nor its subordinate institutions have granted retirement bonuses. These existed only at CNI, but we are now abolishing them,” the Minister added.

Reorganizing the National Housing Agency (ANL)

Providing housing for young people, social and emergency housing, service housing for doctors and teachers, and housing for members of the Roma community remains a top priority for both the Government and the Ministry of Development. This is expected to become a priority at the EU level as well, especially with the appointment of the first-ever European Commissioner for Housing.

To improve efficiency, the National Housing Agency (ANL) will be dissolved and absorbed into the Ministry. The Ministry is already overseeing housing construction investments with over 10 times higher efficiency than ANL, with fewer personnel managing larger projects. Ongoing construction projects will be handed over to local authorities, while the Ministry will remain the primary financier.

Out of the current ANL staff, 50 filled positions will be transferred to the Ministry through a competitive process if needed, while 74 filled positions and all vacant roles will be eliminated. All management positions within ANL will also be dissolved.

National Institute of Administration (INA) to Be Absorbed

The National Institute of Administration (INA), another subordinate institution, will also be absorbed by the Ministry of Development. INA's mission is to provide professional training for civil servants and public sector employees, helping to improve the quality of public services.

However, the current training system requires a redesign to become more efficient. The Ministry will present a new concept and training offer in 2026, with INA to be fully absorbed as part of the reorganization. The Minister noted that, during his previous term, he also oversaw the restructuring of the State Construction Inspectorate, another subordinate body.

Budgetary Impact and Next Steps

The budgetary impact of the reorganization is estimated at 22,668,427 lei per year. Within 15 days of the adoption of the Government’s Emergency Ordinance formalizing these measures, a Government Decision will be issued to define the new organization and operational structure of the Ministry of Development, Public Works and Administration. (Photo: Freepik)