EU disburses Romania 2nd payment under RRF, 3rd one stuck in special pensions bill

The European Union (EU) disbursed Romania the second payment under the Recovery and Resilience Facility (RRF), related to H1 2022 implementation and with a value of EUR 2.76 billion (EUR 3.22 billion minus the payments made in advance) – out of which some two-thirds is a grant and one third is a loan.

The RRF implementation is likely to accumulate longer delays in the future amid sluggish reform of the special and normal pensions.

The second disbursement, requested on December 15 last year, was based on 51 milestones and targets scheduled for the first half of 2022.

“Romania was among the first EU countries that managed to do the due diligence for the second tranche of money,” minister for investments and European projects Marcel Bolos commented, according to Economica.net.

Some EUR 53 million of the second payment is set aside for later payment after two milestones related to the energy sector are met. The 49 targets and milestones met cover key reforms in areas such as the green and digital transition - the adoption of the law on decarbonisation and the entry into force of the law on cloud services used in the public sector, the EC confirmed.

Romania has not yet sent the third payment request under RRF six months after it was scheduled, mainly because of the special pensions bill. The request covers targets and milestones scheduled for H2 2022 (including the special pensions reform still pending).

In early September, minister Bolos told lawmakers the request would be sent by the end of the month, “or October 15 at the latest” – more than six months later than initially scheduled.

The special pensions bill is still in Parliament after the Constitutional Court expressed objections. Prime minister Marcel Ciolacu said on September 29 that the deadline for the special pensions legislationl is the end of November – meaning another two months added to the six-month delay in the third payment request related to targets initially scheduled for H2 2022.

Overall, the RRF envisages a total of over EUR 29 billion for Romania in grants and loans (roughly equal parts).

(Photo source: Marian Vejcik/Dreamstime.com)