Romania's EU Funding at Risk Amid Persistent Corruption Challenges
Romania grapples with a prevalent perception of corruption in its business environment, with deterrence measures against it advancing slowly. Despite this, the country is poised to receive substantial EU funding, including EUR 77 billion by 2030, to support its recovery and resilience. However, concerns persist about the effective use of these funds due to enduring corruption challenges.
Romania has established dedicated institutions like the National Anticorruption Directorate (DNA) and the National Agency for Integrity (ANI) to combat corruption. These bodies focus on investigating high-level corruption and recovering illicit assets. However, their effectiveness has been mixed due to judicial process challenges and political interference.
American investors have expressed concerns about corruption in Romania's customs service, municipal officials, and local financial authorities. Despite progress in combating corruption, it remains a significant challenge. Romania lacks a functional regime for confiscating assets obtained through corruption, and legislative changes have weakened its anti-corruption efforts. Nearly 10,000 criminal cases were closed due to statutes of limitations.
The judiciary system in Romania is inefficient and largely paper-based, leading to lengthy trials and losses at the European Court of Human Rights. Additionally, the government has struggled to smoothly attract EU funds and list minority stakes of state-owned businesses on the stock exchange.
With substantial EU funding on the horizon, Romania must address its corruption challenges and strengthen its institutions to ensure effective use of these funds. This includes improving the efficiency of its judiciary system, enhancing the confiscation of illicit assets, and streamlining the attraction of EU funds.
