Tag: reforms and investments

  • Parliament debates over the National Recovery and Resilience Plan

    Parliament debates over the National Recovery and Resilience Plan

    Reforms, investment and a better management of
    taxpayer money are the main objectives of the Government, which will be implementing
    the National Recovery and Resilience Plan, known as PNRR. Prime Minister Florin
    Cîţu on Wednesday presented the Plan in Parliament. The 30 billion Euro allotted
    by the European Commission will reach every corner of Romania to recover the
    time lost in the last 30 years, the Prime Minister promised. Florin Cîţu said
    that Romania will be receiving funds that will be invested particularly in
    transport, education and healthcare, also to be used to carry out reforms. The
    Prime Minister said guarantees are needed to make sure public funds are not
    wasted over the coming period. Florin Cîţu:


    This plan or reform won’t cut back on revenues,
    pensions and other apocalyptic scenarios. It’s a way of efficiently administering
    our present-day budget, of paying higher pensions and salaries by 2030 without destabilizing
    Romania’s finances.


    PNRR is different from all the other programs run
    so far on European funds, Prime Minister Florin Cîţu also said. The Romanian
    official said it came in response to the economic fallout of COVID-19 and is
    focused on investments and reforms. Florin Cîţu added that investments will be
    implemented together with Romanian investors in particular, warning at the same
    time that all investment projects must be finalized by 2026, or else the
    European funds would be lost. The European Commission is interested in the
    sustainability of public salaries and pensions, Liberal leader Ludovic Orban
    said in turn. The co-president of the USR-PLUS alliance, Dan Barna, expressed
    optimism over the political support and responsibility regarding the Government’s
    reforms. The plan has sparked discontent in the ranks of the opposition, who
    criticized the document and accused the Government of trying to introduce
    austerity measures. The Social-Democratic Party in opposition announced it
    would call a no-confidence vote in Parliament. PSD leader Marcel Ciolacu:


    Your proposals mean freezing incomes, increasing
    the retirement age and taxes for businesses and the population. You consider
    yourselves the apostles of transparency, but in fact you’re just the trumpets
    of austerity.


    The co-president of the ultranationalist party
    AUR, George Simion, in turn said that his party’s MPs will support any
    no-confidence motion against Florin Cîţu’s Cabinet. On May 31, Romania will be submitting
    the plan to the European Commission, and on June 2 it will be officially
    published. Bucharest is due to receive €29.2 billion, of which €14.2 billion in
    grants and €15 billion as loans. (VP)

  • Adjustments made to PNRR

    Adjustments made to PNRR

    The
    National Recovery and Resilience Plan (PNRR) has been adjusted as per the
    recommendations of the European Commission regarding major reforms and
    investment projects which Bucharest authorities want to implement over the coming
    period. Prime Minister Florin Cîţu has called on his Cabinet to finalize all
    proposals for this document ahead of talks due to take place next week with Commission
    representatives. Florin Cîţu said the Plan has been adjusted to reflect the
    Commission’s recommendations, from 42 billion Euro to 29 billion Euro, after
    cutting back on investments in a number of fields. The Prime Minister said PNRR
    will absorb all the funds allotted to Romania.


    It’s
    time we accelerated things a bit. We have a few details to work out. I’m sure
    PNRR will represent Romania’s development interests in the coming period and,
    of course, we will be implementing them. There are a lot of things to discuss,
    but I am sure PNRR will be good for us, and we will be attracting all the funds
    earmarked for Romania.


    The
    adjustment of the plan involved modifications to allocations to the project Educated
    Romania. Education will therefore receive 3.7 billion Euro, way above the EU
    average, Minister for Investments and European Projects, Cristian Ghinea, has
    explained.


    As
    per the European Parliament’s recommendation, I’ve said from the very beginning
    that education is a priority. PNRR originally allotted 4 billion Euro to
    education, which now has been cut back to 3.7 billion. Right now, 12% of the
    Plan’s funds go to education, which is way above the EU average and the
    recommendation of the European Parliament.


    PNRR
    could help adjust the public budget deficit to around 3% of the GDP in 2024, by
    supporting the domestic market, a convergence report published by the National
    Bank of Romania reads. According to the report, PNRR and the Multiannual
    Financial Framework are extremely important for Romania, helping correct the
    budget deficit, reduce the impact of the recession and, by means of structural reforms
    and quality public investments, influence the evolution of the GDP on the
    medium-term, the report reads. In Tuesday’s session, the Government in
    Bucharest adopted the National Convergence Plan, providing for reforms of the
    pension and salary systems, state-owned companies and the public administration.
    (V.P.)