ocp192_en

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Memorandum of Understanding on Specific Economic Policy ConditionalityPrior to disbursement, the Authorities:a. Submit to the Council of State the Presidential Decrees needed to finalize therestructuring process of line ministries (excluding Ministries of Foreign Affairs,Public Order and Citizens’ Protection and National Defense).b. Complete the transfer of a cumulative 25,000 employees to the mandatory mobilityscheme. Mandatory transfers of employees of tax authorities will be counted againstthe target.c. Meet the end-March 2014 target for cumulative 5,000 exits.d. Adopt, through the Government Council of Reform, the two-year AdministrativeReform Action Plan, including the Human Resources Strategy.Other ActionsTo further advance the reform agenda during 2014 the Authorities:1. Having adopted a human resources strategy, reflect this strategy in legislation to be adopted byParliament (December 2014). The legal acts will aim at ensuring institutional continuity andhigher levels of efficiency in the public administration, and provide a basis for evaluating anddeveloping the competences of the senior management and the staff at large. They will, interalia:i. Introduce a new, competence-based legal framework for the recruitment of topmanagement (May 2014).ii. All senior appointments will be filled based on this new framework (December2014).iii. Complete the appointment process of Heads of Unit (June 2015).2. Establish within the public administration an internal job market, to give the opportunity to allemployees to find new positions. The job market will be transparent, and include assessmentsthrough predetermined procedures, as well as and experiences. The internal job market willreplace the practice of long secondments, while time-limited secondments will only beallowed in very specific cases as of 1 st January 2015 (March 2015).3. Develop the necessary tools for the functioning of the internal job market. This will includesetting up a database for the management of personnel, committees for the selection ofpersonnel, a database for the management of open positions within the administration, detailedprocedure, departure package. These tools are communicated across the administration as soonas possible (December 2014).4. Perform, in consultation with the EC-ECB-IMF, a broad review of the Governmentemployment levels and the remuneration structure with the objective to ensure they areconsistent with high-quality provision of public services and are fiscally sustainable. This willinclude a fiscally-neutral review of the wage grid, with a view to de-compressing the wagerange in both directions, in connection with the skill, performance and responsibility of staff ina fiscally neutral way.i. A first draft will be submitted for consultation with the EC/ECB/IMF in July 2014;ii. The new wage grid will be legislated in October 2014; and effective January 1,2015.5. Perform a comprehensive review of all non-wage benefits, such as working hours, leavearrangements, per diems, travel allowances and perquisites (July 2014).170
Memorandum of Understanding on Specific Economic Policy Conditionality6. Following the review, adopt the necessary legal instruments to align them with best practisesin the EU (September 2014).7. Introduce, as of January 2015, a permanent and continuous system of individual evaluations,including performance-based incentives, in order to assess 2014 performance by March 2015.A draft law will be presented to the EC-ECB-IMF (September 2014).8. As a transitional measure revise the current system of individual evaluations by introducing aceiling to the percentage of employees who are assigned top grade and a floor to those withlow grade (April 2014). The 2013 performance assessments will be conducted under thisappraisal system.9. The Authorities will enforce the probation period for new staff of two years, including througha comprehensive performance assessment after the end of the first year, and at the end of theprobation period (continuous).10. The “availability” (mobility and exit) scheme is distinguished from a new “mobility” scheme,which is a permanent mechanism for voluntary and mandatory transfers, to better allocatepersonnel within the public administration. It will not be connected to exits nor will it requireplacing employees under the availability scheme and reducing their remuneration. A minimumof 6,000 employees will be involved in the new mobility scheme in 2014 (continuous).11. The Authorities remain committed to the renewal of personnel by accelerating the effort totackle disciplinary cases, cases of incapacity, and illegal hirings (including illegal conversionof temporary contracts into permanent ones). Those actions will lead to the dismissal ofpersonnel proven unable to exercise their duties as public servants (indicatively 2,000 by Q12015) (continuous).12. In consultation with the EC/ECB/IMF, and taking into account the results of the publicadministration reforms, the possible need to formally define exit targets will be assessed(September 2014).13. Ensure that employees placed in the availability scheme are assessed within a centrallydefinedevaluation framework, before reallocation to new positions, or exit (if they fail to bereallocated) (continuous).14. To support the end-2013 cumulative exit target of 4000, as well as the early delivery of the2014 target, the authorities will accelerate efforts in addressing the disciplinary cases andfurther evaluating entities. Effective 2014, outsourcings will not count under the 1:1 rule(continuous).15. To foster the effective restructuring of the public sector and use of the mobility and exitscheme, the Authorities will:i. Complete staffing plans for remaining general Government entities, to be adopted bythe GCR progressively and at the latest by May 2014.ii. Staffing plans are to be implemented with their respective legal acts for each entitywithin three months after their adoption by the GCR and no later than August 2014.iii. Local Governments, regions and decentralized administrations’ staffing plans will beimplemented by December 2014.iv. Involve the Commission services with respect to the assessment of structures andstaffing linked with the implementation of the Cohesion Policy (NSRF OperationProgrammes) and will seek its agreement when taking related decisions (continuous).16. The Authorities remain on track to reduce the general government employment by 150.000 bythe end of 2015. They will provide a full and updated picture of public employment:i. Finalise the recording of all public sector (excluding Chapter B companies) employeesinto the census database (April 2014) and payment of their wages through the SinglePayment Authority within months of their entry into the census database (September2014).171
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OUTLINE OF THE REPORTEXECUTIVE SUMM
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LIST OF GRAPHSGraph 1. Economic cli
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ACKNOWLEDGEMENTSThe report was prep
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European CommissionThe Economic Adj
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1. INTRODUCTION1. INTRODUCTION1. Th
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2. MACROECONOMIC AND FINANCIAL DEVE
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2. Macroeconomic and financial deve
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Chart 3Graph 2.3. Exports of goods
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European CommissionThe Second Econo
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Chart 17Graph 11.1 labour reform in
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Chart 18Graph 13.1. Distance to Fro
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4. DEBT SUSTAINABILITY ANALYSIS AND
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4. Debt sustainability analysis and
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4. Debt sustainability analysis and
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Table 12. List of Milestones to be
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Memorandum of Understanding on Spec
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OCCASIONAL PAPERSOccasional Papers
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No. 46No. 47No. 48No. 49The Western
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No. 80 2011 Pre-accession Economic
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No. 119No. 120No. 121No. 122Possibl
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No. 1582013 Economic and Fiscal Pro
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