Romania's National Recovery and Resilience Plan: Latest state of play

Briefing 14-09-2022

Romania's National Recovery and Resilience Plan (NRRP) embodies an ambitious agenda of reforms and investment aimed at mitigating the socio-economic effects of the Covid-19 crisis. The total cost of the plan amounts to €29.2 billion, or 13.1 % of the country's 2019 GDP. This allocation, corresponding to 4 % of the total volume of the Recovery and Resilience Facility (RRF), includes the entire grant allocation (€14.2 billion) and a considerable part (€14.9 billion) of the available loan allocation. In June 2022, Romania's grant allocation was revised downwards by €2.1 billion to €12.1 billion (-14.9 %). The measures in the plan also aim to facilitate the country's green and digital transition, as well as focusing on youth by enhancing the education sector, another major objective of the NRRP with a 12.4 % share of the total RRF allocation. The plan is to be implemented by 2026. Following the Council's positive assessment of the NRRP, Romania received the pre-financing funds, which correspond to 13 % of the country's total financial allocation, for both grants and loans. In May 2022, Romania submitted its first payment request of €2.6 billion to the European Commission, which is being assessed. On top of the RRF financial envelope, Romania will benefit from complementary funds from the Next Generation EU (NGEU) instrument, namely REACT-EU, with a maximum of €1.5 billion in 2021 and 2022, as well as the funds from the Multiannual Financial Frameworks (previous and current). This will put roughly €100 billion at Romania's disposal by 2027. The European Parliament continues to guarantee transparency and provide accountability to EU citizens by engaging in the interinstitutional dialogues on the implementation of the RRF and scrutinising the Commission's work.