Romania’s governing Social Democratic Party (PSD) is preparing a major administrative reform that could merge hundreds of small settlements and redraw county boundaries. Hungarian representatives warn that the changes could weaken the political representation and language rights of Hungarian communities in Transylvania.

The plans are still taking shape, and no official written proposal has been presented. However, as Index reported, several population thresholds have already been discussed for merging settlements: initially 1,500 residents, later 3,000, and even 5,000. According to Anna Horváth, executive vice-president of the Democratic Alliance of Hungarians in Romania (RMDSZ) responsible for local governments, applying the lowest threshold alone could affect 429 settlements, including 53 with significant Hungarian populations. Thirty of these are currently led by Hungarian mayors.

Tax incentives for voluntary mergers

The government argues that many small settlements cannot finance their operations independently and place an excessive burden on the state budget.

Development Minister Alexandru Stoica recently announced that the government would encourage voluntary mergers by offering financial incentives. These could include cutting residents’ local taxes by as much as 50% and providing a separate investment programme for municipalities that choose to merge. According to Krónika, local referendums on the proposed mergers should be prepared by 1 March 2027, while the changes could take effect from 2028.

The RMDSZ does not reject administrative reform in principle but insists that local communities must decide their own future. Party leader Hunor Kelemen has reiterated that every affected settlement should hold a referendum. The organisation favours voluntary cooperation and financial incentives over mergers imposed from Bucharest.

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County boundaries could also change

The plans go beyond small settlements. PSD vice-president Dragoș Benea, who leads the party’s working group on the reform, has also called for restructuring Romania’s county system.

A map circulating publicly suggests merging Harghita County into Mureș, Covasna into Brașov, Satu Mare into Bihor, and Arad into Timiș County. However, Horváth told Index that the map’s origins are unknown and it should not be treated as an official government proposal.

The RMDSZ considers any changes that would reduce Hungarian communities in Szeklerland to a minority at county level, or weaken the position of Hungarians in Partium, a red line. Such mergers could also affect access to minority-language rights if the Hungarian population fell below the relevant 20% threshold in a new administrative unit.

Romanian local leaders have also voiced opposition. The mayor of Cavnic in Maramureș County has threatened to call a referendum on secession from Romania if his town loses its city status or the county is merged with another.

The PSD working group is expected to prepare its proposal by the end of March 2027. Until then, the details and final shape of the reform remain uncertain.

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