Romania's government, led by Prime Minister Ilie Bolojan since mid-June 2025, has initiated a series of austerity measures aimed at addressing the country's budget deficit and fiscal mismanagement. The government plans to reduce the number of public sector employees from 1.3 million to approximately 442,000 as part of a broader reform strategy. Bolojan highlighted that Romania has been spending 132 lei for every 100 lei collected in taxes and emphasized the need to avoid a downgrade to junk status, which he warned would set the country back 15 years. The austerity package includes cutting or capping bonuses, freezing salaries and pensions, and introducing a health insurance contribution (CASS) for pensions exceeding 3,000 lei. These measures have sparked widespread protests among public sector workers, including teachers, healthcare employees, and pension fund staff, with demonstrations occurring in Bucharest and other regions. Trade unions have threatened strikes, and opposition parties have announced plans to file a motion of no confidence against Bolojan's government. Some political figures, such as former Prime Minister Marcel Ciolacu, have criticized the austerity as excessive, while others, including PSD member Constantin Toma and Minister Dragoş Pîslaru, have expressed support for the government's decisions. The government also intends to undertake territorial reorganization affecting thousands of local officials. Bolojan has warned that failure to implement these reforms will cost him his position. The European Commission has reprimanded Romania for its fiscal management, with the country projected to have the highest EU budget deficit in 2025. The austerity measures have led to social unrest amid high summer temperatures and other unrelated local issues such as parking disputes and storm damage in Bucharest.