Romania risks losing more than €15bn (nearly 4% of GDP)  in Recovery and Resilience Facility (RRF) funding unless it fulfils the 45 outstanding targets and milestones linked to reforms and investment projects, according to a document discussed on May 14 by the interim cabinet of Prime Minister Ilie Bolojan and published by Digi24. On the same day, the European Commission greenlighted the fourth payment request for €2.6bn, which still requires further steps before being disbursed.

The note discussed by the government on May 14, drafted by the Ministry of Investments and European Funds, outlines an action plan aimed at ensuring full absorption of Romania’s remaining RRF allocation before the programme deadline. The total amount at risk exceeds the €10.7bn (over 2.5% of GDP, including €2.6bn greenlighted by the European Commission as the fourth payment) still due to be disbursed, as it also includes funds that Romania may have to return if projects are not completed within the required timeframe.

Only seven of the 45 targets and milestones have already been fulfilled, while another 38 must be completed by the end of August.

Of the remaining targets, 11 involve reforms considered to have a significant impact on the functioning of the state and therefore require parliamentary approval of nine laws and two government decisions. These reforms are linked to €7.5bn in RRF funding and therefore depend on political backing in parliament.

The government plans to submit the legislative packages in three stages between May 15 and May 31. Some of the measures are still awaiting approval or clarification from the European Commission before being sent to lawmakers.

Another two milestones, with no significant impact on the functioning of the state, linked to €330mn, can be completed directly through government decisions without parliamentary approval. These include the restructuring of three state-owned enterprises.

The remaining 25 milestones, accounting for €7.3bn, relate mainly to procurement procedures and investment projects coordinated by ministries or other public administration bodies and do not require additional legislation (political support). Only three of these measures are classified as having a significant impact on the functioning of the state.

Speaking after the government meeting on May 14, interim Prime Minister Ilie Bolojan said delayed payments to contractors represented a major obstacle to completing projects on time. This mainly refers to the last group of targets and milestones.

“Many ministries have long delayed their payments to contractors, construction companies, in some cases by weeks or months,” Bolojan said. “It is difficult to assume that the contractors would allocate sufficient resources to complete the projects.”

He said the government’s objective was to bring payments up to date within the next two to three weeks to maintain work on projects financed through the RRF.

Bolojan also announced that the government would publish weekly data on withdrawals, payments and the absorption rate by ministry “so that there is public pressure and everyone knows that it is no longer a joke.”

The interim prime minister added that the cabinet discussed in first reading a draft decision linking bonuses paid to public servants working on European projects to performance indicators.