Tag: facility

  • June 27, 2023 – UPDATE

    June 27, 2023 – UPDATE

    RECOVERY The European Commission Tuesday endorsed a positive preliminary
    assessment of the second payment request submitted by Romania under the
    National Recovery and Resilience Facility, and found 49 out of the 51 targets
    and milestones to be completed. Two
    milestones, concerning investments in the energy sector, are deemed as not satisfactorily
    fulfilled, and therefore the Commission activated a ‘payment suspension’
    procedure. The EC acknowledged the first steps already taken by Romania to
    fulfil these outstanding milestones, but emphasised that important work remains
    to be done. Romania is to submit its observations within one month, and has an
    additional 6 months to fulfil the outstanding milestones. If and when they have
    been completed, the Commission will lift the payment suspension. In this
    context, the EC chief Ursula von der Leyen stated that Romania has progressed
    well in the implementation of its recovery and resilience plan, for instance
    carrying out reforms on road safety, renewable energy and public sector cloud
    services. PM Marcel Ciolacu says the
    two delayed milestones will be recovered quickly, so that the country may
    receive all the funds earmarked for them. The total amount in the second
    payment request is EUR 2.8 billion, but Romania will receive EUR 53 million
    less. The USR leader in opposition, Cătălin Drulă, says the money will only
    arrive in September and the 3rd and 4th payments, also
    scheduled for this year, stand no chances of being received


    PROTEST About 700 employees with the police and penitentiary systems,
    as well as court clerks protested in front of the Parliament building on
    Tuesday, against the revision of the military and service pension system.
    Protesters also asked for the elimination of all wage inequities, ceilings and
    postponements imposed by the Government since 2010. According to protesters,
    the increase in the retirement age from 60 to 65 is unjustified and will turn
    Romania into the country with the most unfavourable retirement terms in the
    NATO bloc. On Monday, the Romanian MPs passed a bill on the reform of all
    special pensions received by some professional categories in Romania. The
    changes concern, among other things, the increase in the retirement age for
    some beneficiaries and the taxation of amounts that exceed the net average
    salary. On the same day, Parliament eliminated the special pensions of senators
    and deputies.


    BACCALAUREATE Romanian high school graduates Tuesday sat the
    compulsory test in their respective majors as part of the Baccalaureate exam. The
    last test of the exam for most students is scheduled for Wednesday, with only
    ethnic minority students left to sit a mother tongue test on Thursday. During
    the examinations all classrooms are subject to audio and video surveillance,
    and access with electronic devices or any other materials may lead to expulsion.
    The grades will be announced on 3 July, and they may be appealed on the same
    day, with the final results to be announced on 7 July.


    FARMERS Romania will receive EUR 30 million from the European
    Commission in aid for farmers affected by the import of cheap grain from
    Ukraine. The support package, the second approved by Brussels after the one in
    March, is worth a total EUR 100 million and is granted to five border countries
    – Romania, Poland, Bulgaria, Hungary and Slovakia. Poland, with almost EUR 40
    million and Romania with EUR 30 million are the biggest beneficiaries of this
    aid. The deadline for payments to farmers is 30 September. After the Ukrainian
    Black Sea ports were blocked following the Russian invasion, the Romanian port
    of Constanţa has become the most important alternative shipping route. (AMP)

  • EU money for Romania’s infrastructure

    EU money for Romania’s infrastructure


    Romania is set to receive the first payments under the
    Recovery and Resilience Facility, intended for the country’s economic recovery. The European Commission has authorized
    the first disbursements in the grant and the loan components of the plan. The
    decision means EUR 2.6 bln coming Romania’s way.


    Bucharest had applied for
    these first payments in May, after meeting the 21 targets and milestones
    related to the 4th quarter of 2021. In September, the European
    Commission’s assessment of these targets was endorsed and forwarded to the
    Economic and Financial Committee, which also approved it.


    At the time, the
    president of the European Commission, Ursula von der Leyen, said the positive
    assessment had been prompted by good and quick progress in implementing the
    first set of reforms and investments under the Plan.


    This is a moment that
    confirms the government’s consolidated effort, which translated into the
    meeting of the targets and milestones undertaken by Romania for the last
    quarter of 2021 and into reforms of major importance for our country,ˮ the
    minister for European projects and investments, Marcel Boloş, said.
    Realistically speaking, it is only the beginning of a long road ahead of us,
    but one which, if key aspects in the Plan are completed, will result in
    boosting the economy and in generating a solid multiplier effect for
    investments in motorways, railway infrastructure, schools, hospital
    infrastructure and everything related to the strengthening of the Romanian
    economy,ˮ Marcel Boloş added.


    The next payment
    application will amount to a total EUR 3.2 bln, for which over 50 targets will
    have to be met, related to the first half of this year.


    Under the Recovery and
    Resilience Facility, Romania can benefit from nearly EUR 30 bln. For the
    implementation of its national plan, Bucharest has already cashed in 2
    pre-financing instalments totalling around EUR 3.8 bln.


    In related news, the
    minister for European projects and investments stated last week that he hoped
    the European Commission would endorse all the 8 regional operational programmes
    by November, which would be a turning point in that it would be for the first time that local
    authorities will make independent decisions on how to spend these EU funds. Marcel Boloș pointed out that half
    of the 8 programmes for the 2021-2027 financial cycle have been approved, and
    that they amount to a combined EUR 11 bln. The EU money for the regional
    programmes may be used up until 2030. (AMP)

  • National Recovery and Resilience Plan under debate

    National Recovery and Resilience Plan under debate

    The National Recovery and Resilience Plan, under which Romania may access European funding for development, was discussed on Monday by the right-of-centre ruling coalition, after having been analysed earlier the same day with president Klaus Iohannis as well.



    As all coalition leaders underscored, negotiations with the European Commission on this document are ongoing, and the Plan will be submitted at the end of May. The one-month postponement of the submission has to do with both technicalities and political issues in various areas, such as irrigation systems, transport or natural gas infrastructure, which the Commission does not want funded under the Recovery and Resilience Facility, the minister for investments and European funding Cristian Ghinea explained.



    He said several other member states will also submit their national plans after the original deadline set by the Commission, 30 April. As the Liberal PM Florin Cîțu said in turn,



    Florin Cîțu: “Romania has a number of priorities, and we stand by them, but obviously these priorities must be placed within this system that the European Commission has put together for making these funds available.



    Deputy PM Dan Barna (USR/Plus) in turn dismissed the criticism against the ruling coalition, and said there were no mistakes as regards the Plan:



    Dan Barna: “Some of the components were found to be quite mature and well designed and will certainly be included in the final version of the document. Some other elements are being discussed these days, and this was the very topic of the talks in Cotroceni with the president.



    As for the deputy PM Kelemen Hunor (Democratic Union of Ethnic Hungarians), he said this is not a matter of Romanias Plan being rejected by the European Commission.



    Moreover, the coalition leaders called on the Social Democrats in opposition not to endanger the negotiations with the EC with various statements. Previously, the announcement that the Plan must be altered triggered a downpour of political reactions, mostly, and the most critical of them, from the Social Democrats, who claim the current Cabinet are unable to see this project through. The Social Democrat leader Marcel Ciolacu:



    Marcel Ciolacu: “Unless they present this Plan before Parliament, I will ask my colleagues to go on parliamentary strike. We will take part in floor group sessions and committee meetings, but not in plenary sessions.



    MEP Victor Negrescu (Social Democratic Party) said some of the projects under the Plan submitted by Romania were rejected by the European Commission and require substantial changes, which is why he called on the Government to open negotiations with social partners, civil society and political parties. (translated by: A.M. Popescu)