Finance Minister Alexandru Nazare calls on institutions to prepare plans to reduce spending and merge agencies

Finance Minister Alexandru Nazare has asked all chief credit release officers to identify savings and agencies that could be merged, amid the continuation of austerity measures and the need to keep the budget deficit under control.

The request was sent at the beginning of this week, and institutions must propose which expenses can be reduced and which structures can be reorganized. The minister said the measures would not be applied uniformly, but must be adapted to each institution’s situation so that essential activities are not affected.

Alexandru Nazare warned that spending cuts are necessary to prevent the Government from having to raise taxes again. He explained that the decisions must be assumed by each chief credit release officer, rather than imposed exclusively at the central level.

The minister also referred to the experience of the previous crisis, in 2010, when cuts implemented without sufficiently careful analysis reportedly affected the functioning of institutions. “I do not want us to be forced by circumstances to raise any tax again,” Nazare said.

The announcement comes as members of the Luca Niculescu Cabinet promote financial support measures, including aid and increases in pensions and salaries. The Government must therefore find a balance between these commitments and reducing public spending.