Romania clears four reforms tied to €3.5bn in EU recovery funds

Romania is set to promulgate four of the six laws linked to €5bn in grants under the European Union’s Recovery and Resilience Facility (RRF), after the Senate failed to approve the Integrity Law on July 30, according to ProTV.
The four laws passed by parliament could unlock €3.5bn if the European Commission assesses Romania’s compliance positively and the legislation is promulgated by the end of August. They represent the bulk of the legislation required to access the RRF funds, while the Integrity and Wage Laws remain critical to securing the remaining €1.54bn.
The Integrity Law, which carries €770mn in associated RRF funding, was blocked after two last-minute amendments submitted by the Social Democratic Party (PSD) in the Senate prompted opposition from Save Romania Union (USR) and the National Liberal Party (PNL). The amendments have the effect of retroactively removing USR president Dominic Fritz from his position as mayor of Timisoara, and USR claimed they were specifically designed with this aim.
The legislation was approved by the Chamber of Deputies on July 29, but the parliamentary procedure may resume next week.
The sixth law, concerning public-sector wages, has not yet been submitted for a parliamentary vote amid major trade union protests and a lack of political agreement. It also has €770mn in associated RRF funding.
The four laws already approved concern urban planning, heating decarbonisation, performance bonuses for tax and customs officials, and civil service careers.
The Urban Planning Code, worth €972mn under the RRF, was approved by the Senate as the final decision-making chamber and will be sent to President Nicușor Dan for promulgation. It consolidates rules on territorial planning and construction permits, while aiming to simplify procedures and expand digitalisation. For Bucharest, a key provision concerns the transfer of authority over building permits from district mayors to the capital's mayor, as endorsed by residents in a 2024 referendum. The bill has been in Parliament since 2023.
The heating decarbonisation reform, also worth €972mn, was approved by the Senate, the final decision-making chamber, after an earlier version was rejected in June. It promotes heat pumps, solar and geothermal energy and other low-emission technologies, while providing for a gradual reduction in the use of forest biomass and wood for heating. The reform could affect investment in district heating and the modernisation of heating systems.
The two remaining reforms were approved by the Chamber of Deputies, as the final decision-making chamber. One establishes performance-based and temporary bonuses for employees of the National Agency for Fiscal Administration (ANAF) and the Customs Authority, linked to additional revenue collected and measurable performance indicators. Annual bonuses cannot exceed 12% of the basic salary budget. At the same time, separate rewards may apply to cases generating more than €1mn for the state after the money has been collected and claims confirmed.
The fourth reform amends the Administrative Code to regulate recruitment, competitions, promotion and performance evaluation for civil servants and contractual staff. It aims to establish career progression based on competencies and results and clarify the criteria for management positions.
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