Romania's CFR SA faces potential salary crisis amid administrative deadlock

Romania's national railway operator, CFR SA, faces a potential inability to pay employee salaries due to an administrative deadlock between state institutions. The National Railway Federation Movement Commercial Wagons warned that if the 2026–2030 Activity and Performance Contract is not approved, the company will lack the necessary funds for payroll.

The Ministry of Justice has returned the contract project, stating it cannot be adopted until a Government Decision approves the 2026–2030 Railway Infrastructure Development Strategy. The Ministry cautioned that adopting the contract without this sequence could lead to legal suspension or annulment in administrative court. Unions warn that failure to pay salaries could trigger large-scale labor disputes and disrupt or block freight and passenger transport.

Separately, major railway infrastructure projects in Romania are progressing at varying speeds. The modernization of the Bucharest Progresu – Giurgiu Nord line is approximately 12% complete, with full reopening expected in 2028. Other large-scale projects funded by the National Recovery and Resilience Plan (PNRR), including lines between Caransebeș, Timișoara, and Arad, are under pressure to meet upcoming deadlines, with some sections experiencing delays due to technical disputes and construction permits.