Romania receives partial funding from the third installment of the Resilience Facility
Romania Needs to Coast through More Hurdles to Unlock Full EU Funds
Here's a lowdown on Romania's current financial situation. The country is in line to receive EUR 1.3 billion from the EU's third Resilience Facility, but there's a catch. To get the remaining EUR 700 million, Romania needs to tick off all the targets within six months.
While Romania has nailed the microenterprise reform, there's a spanner in the works. The Ministry of Investments and European projects (MIPE) has pointed out excessive spending on "special pensions" as an issue that needs addressing. Furthermore, there's a need for improved corporate governance in state-owned enterprises. Sadly, these concerns aren't a walk in the park.
In response, the European Commission has initiated the "suspension of payments" procedure, a move authorized by the Resilience Facility Regulation. Romania now has one month to submit an official response to the Commission's letter, followed by six months to take the necessary actions and meet the targets outlined in the payment request.
The Commission has pointed out a few key areas that need improvement. For starters, the milestone 215 ("Entry into force of the legislative framework to reduce expenditure on special pensions") has yet to be met. Additionally, Romania needs to refine its corporate governance in state-owned energy companies, implement corporate governance policies for state-owned enterprises, and fill key positions at the National Agency for Monitoring and Evaluation of Public Enterprises - AMEPIP.
Romania is sitting on a EUR 28 billion pot from the national plan for the Resilience Facility (PNRR), doled out through eight payment requests linked to extensive reforms and investments. With the program due to expire, the government has the opportunity to submit two to three additional requests above the three they've already submitted.
(Photo source: Ruletkka/Dreamstime.com*
The country's financial future rests on meeting these targets and dodging the obstacles ahead. Stakes are high, but with perseverance and focus, Romania may just claw its way to the finish line.
iulian@our website
- To unlock the full EUR 700 million from the EU's third Resilience Facility, Romania needs to address the issue of excessive spending on special pensions and improve corporate governance in state-owned enterprises.
- The European Commission has initiated the suspension of payments procedure due to Romania's failure to meet the milestone 215 regarding the reduction of expenditure on special pensions.
- Romania needs to refine its corporate governance in state-owned energy companies, implement corporate governance policies for state-owned enterprises, and fill key positions at the National Agency for Monitoring and Evaluation of Public Enterprises - AMEPIP to comply with the Resilience Facility Regulation.
- The Romania government has the opportunity to submit additional requests for funds from the national plan for the Resilience Facility (PNRR), which is linked to extensive reforms and investments in the business and industry sector.
