EU Commission approves new version of Romania’s recovery plan

1 year ago 39

The European Commission on Tuesday approved Romania’s revised Recovery and Resilience Plan, which places greater emphasis on the green transition and reduces funding for certain hospital construction projects.

The adjusted plan sees a decrease of approximately €2 billion in recovery plan funds due to the better-than-expected economic growth, resulting in a current allocation of €28.5 billion, comprising €14.9 billion in loans and €13.6 billion in grants.

The modified recovery and resilience plan (PNRR) incorporates REPowerEU, providing Romania with an additional €1.4 billion in non-refundable funds.

Its revised strategy, which provides for the reform of 56 additional measures compared to the original plan, prioritises the green transition, dedicating 44.1% of available funds (up from 41% in the initial plan) to initiatives supporting climate targets.

REPowerEU introduces two new reforms and seven investments aimed at expediting the production of green energy, enhancing the energy efficiency of buildings, and retraining the workforce in the green energy sector, the European Investments and Projects Ministry announced.

Meanwhile, while the new plan increases the number of funds to be allocated to the country’s digital transition from 20.5% to 21.8%, the previous 9.4% GDP limit for the public pension system is no longer applicable. The government even dropped the provision initially earmarking €740 million for constructing or renovating six hospitals – as Health Minister Alexandru Rafila confirmed these projects will proceed with funds from the European Investment Bank.

The adjusted plan was also hailed by Investments and European Projects Minister Adrian Câciu as “a significant success for Romania in managing and prioritising PNRR investments correctly”.

The Council now has a four-week window to endorse the Commission’s evaluation.

Upon approval, Romania stands to receive €288 million as pre-financing from the REPowerEU funds. Romania has so far received €9.06 billion.

(Cătălina Mihai | Euractiv.ro)