Romania gets final green light for revised PNRR one year before deadline

The Economic and Financial Affairs Council of the European Union on 13 November approved the revised National Recovery and Resilience Plan (PNRR) for Romania, providing for EUR 21.4 billion (EUR 7 billion downward revision) with half of the money (or roughly 2.5% of GDP) to be absorbed within less than a year – which is seen as spurring growth from under-1% expansion rates in 2024-2025.

“We managed to agree on a simplified structure of the plan, through which we reduce the pressure on the state budget, by reducing the loan component and ensuring better implementation of the reforms necessary for the competitiveness of the Romanian economy,” finance minister Alexandru Nazare commented in a ministry’s press release.

The revised plan has a total value of EUR 21.41 billion, of which a major grant component (non-reimbursable funds), of EUR 13.57 billion, and EUR 7.84 billion in loans, being configured on six payment requests (of which three have already been submitted).

The number of milestones and targets was reduced from 518 to 390, without diminishing the ambition of the reforms undertaken, the Romanian Finance Ministry claims.

The changes mainly aimed at eliminating investments with a risk of non-implementation, the transition of some performing projects from the loan component to the grant, and the introduction of new investments with high economic and social impact, such as the capitalization of the Investment and Development Bank or the purchase of ambulances.

(Photo source: Facebook/Alexandru Nazare)