NextGenerationUE: European Commission approves Romania’s € 29.2 billion recovery and resilience plan

The European Commission has adopted a positive assessment of Romania’s recovery and resilience plan, a major step towards the EU disbursing € 14.2 billion in grants and € 14.9 billion in loans to Romania under the Recovery and Resilience Facility (RRF). This funding will support the implementation of crucial investment and reform measures outlined in Romania’s recovery and resilience plan. It will play a crucial role in enabling Romania to emerge stronger from the COVID-19 pandemic.

The RRF is the key instrument at the heart of NextGenerationEU. It will provide up to € 800 billion (at current prices) to support investment and reform across the EU. The Romanian plan is part of an unprecedented coordinated EU response to the COVID-19 crisis, to address common European challenges by embracing green and digital transitions, to strengthen economic and social resilience and market cohesion unique.

The Commission assessed Romania’s plan on the basis of the criteria set out in the RRF Regulation. The Commission’s analysis notably examined whether the investments and reforms contained in the Romanian plan support the green and digital transitions; contribute effectively to tackling the challenges identified in the European Semester; and strengthen its potential for growth, job creation and economic and social resilience.


Securing Romania’s green and digital transitions

The Commission’s assessment reveals that Romania’s plan devotes 41% of the total plan allocation to measures that support the green transition. The plan includes measures to phase out coal and lignite power generation by 2032. Reforms promoting sustainable transport include decarbonization of road transport, green taxation, incentives for zero-emission vehicles and a modal shift towards rail and river transport. The plan also has a strong focus on improving the energy efficiency of private and public buildings.

The Commission’s assessment of Romania’s plan reveals that it is devoting 21% of its total allocation to measures that support the digital transition. This includes measures to digitize public administration and businesses, improve connectivity, cybersecurity and digital skills, and develop an integrated e-health and telemedicine system. Measures to support the digitization of education are expected to help develop the skills of pupils and teachers, and will be reinforced by measures to modernize school laboratories and create smart laboratories. Participation in a multi-country project is planned to be implemented as an important project of common European interest (IPCEI) on microelectronics.


Strengthening Romania’s economic and social resilience

The Commission considers that Romania’s plan includes a broad set of mutually reinforcing reforms and investments which contribute to effectively tackling all or a significant subset of the economic and social challenges described in the country-specific recommendations addressed. to Romania.

The implementation of social and educational reforms and investments should address long-standing vulnerabilities and structural deficiencies. The plan includes measures to strengthen the public administration, in particular by strengthening the efficiency of the judiciary and combating corruption. It will also include measures to support private investment, in particular for SMEs, and to improve the business environment by reducing the administrative burden for companies. The plan’s reforms in the areas of education and employment should support a stronger labor market, promoting growth. The flagship reforms on phasing out coal and decarbonising transport, and investments promoting the green and digital transition should stimulate competitiveness and make the economy as a whole more sustainable. Social resilience is expected to improve as a result of the educational reforms and investments included in the plan. Having a well-qualified workforce and reducing early school leaving should make the economy more resilient to future shocks and the population more adaptable to changing economic models.

Support flagship investment and reform projects

The Romanian plan proposes projects in each of the seven flagship areas of the EU. These are specific investment projects that address issues common to all Member States in areas that create jobs and growth and are necessary for the green and digital transition. For example, the Romanian plan includes a project to build a secure government cloud computing infrastructure to enable interoperability of public administration platforms and data services, encouraging the adoption of digital public services for consumers. citizens and businesses, and the deployment of electronic identity cards for the 8.5 million citizens.

The assessment also concludes that none of the measures included in the plan significantly harm the environment, in accordance with the requirements set out in the RRF Regulation.

The control systems put in place by Romania are considered adequate to protect the financial interests of the Union. The plan provides sufficient detail on how national authorities will prevent, detect and correct cases of conflict of interest, corruption and fraud related to the use of funds.

President Ursula von der Leyen said: “I am delighted to present the European Commission’s approval of Romania’s € 29.2 billion recovery and resilience plan. By focusing on measures to secure green and digital transitions, from improving the energy efficiency of buildings to improving connectivity and digital skills, the measures set out in the plan have the potential to be truly transformative. We will be by your side in the years to come to ensure that the ambitious investments and reforms set out in the plan are fully implemented. “

An economy that works for people Executive Vice President Valdis Dombrovskis said: “Today we approved Romania’s recovery plan to emerge stronger from the crisis and stimulate economic growth. The plan will help Romania decarbonise, with measures to phase out coal and lignite power generation that should boost competitiveness and make the economy more sustainable. It will also promote sustainable transport and improve the energy efficiency of public and private buildings. We welcome the focus on improving connectivity and cybersecurity, as well as the digitization of public administration, healthcare and education, thereby enhancing the development of digital skills. By carrying out social and educational reforms, backed by investments, Romania is expected to stimulate growth by tackling some long-standing structural problems – with a stronger business environment and less bureaucracy. “

Economy Commissioner Paolo Gentiloni said: “With the green light given today by the Commission for Romania’s recovery and resilience plan, the country is taking an important step towards a more prosperous, competitive future. and sustainable. This is a big project, both in terms of the amount of funding Romania is expected to receive and the ambitious nature of its reforms and investments. The European Commission will support the Romanian authorities in their efforts to meet these commitments, which, if successfully implemented, will bring considerable benefits to Romanian citizens and businesses.

Next steps

The Commission today adopted a proposal for a decision to provide EUR 14.2 billion in grants and EUR 14.9 billion in loans to Romania under the RRF. The Council will now generally have four weeks to adopt the Commission proposal.

The approval of the plan by the Council would allow the payment of 3.6 billion euros to Romania in pre-financing. This represents 13% of the total amount allocated to Romania.

The Commission will authorize further disbursements on the basis of the satisfactory achievement of the milestones and objectives defined in the recovery and resilience plan, reflecting the progress made in the implementation of investments and reforms.

More information

Questions and answers: European Commission approves Romania’s € 29.2 billion recovery and resilience plan

Factsheet on Romania’s recovery and resilience plan

Proposal for a Council implementing decision on the approval of the assessment of the recovery and resilience plan for Romania

Annex to the proposal for a Council implementing decision on the approval of the assessment of the recovery and resilience plan for Romania

Staff working document accompanying the proposal for a Council implementing decision

Recovery and Resilience Center: Questions and Answers

Recovery and resiliency facility

Regulation respecting recovery and resilience facilities

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