The leaders of the center-right European People’s Party (EPP) and Renew Europe, two of the most important groups in the European Parliament, publicly asked the European Commission on Monday, August 24, to withhold EUR 770 million in PNRR funds meant for Romania due to the “Fritz amendment.” Their plea concerns the retroactive application of a new integrity law that would invalidate the mandate of Timisoara mayor Dominic Fritz.

EPP president Manfred Weber and Renew group leader Valérie Hayer both signed a letter shared by POLITICO asking Commission president Ursula von der Leyen to make it clear that the money will not be granted unless Bucharest abandons plans to amend a law that could lead to Save Romania Union (USR) party leader Dominic Fritz being banned from holding the office of mayor. 

Weber and Hayer also argued that retroactive application violates EU legislation and Romania’s Constitution and accused the Romanian Social Democrats of deliberately targeting Fritz. “Under the guise of fulfilling a reform milestone for the Recovery and Resilience Facility, the Romanian Parliament has introduced a measure that directly violates Union law and constitutes a serious setback for the rule of law in Romania,” they said in the letter.

"European taxpayers’ money must never become a blank check for political power games,” Hayer told POLITICO. Weber added that “if legislation is designed to remove a political opponent, and EU funds are used as leverage to enforce it, this is no longer just politics - it is a rule-of-law issue.” 

In the letter, they also urged the Commission to send “a signal” before Romanian president Nicușor Dan promulgates the law and before the August 31 deadline for the reforms that would allow access to EU funds. 

The Fritz amendment

Earlier this month, in a 5-3 vote, the Romanian Constitutional Court approved the so-called “Fritz Amendment,” introduced by the Social Democratic Party (PSD) into the law governing the National Integrity Agency (ANI). The same law is a PNRR milestone with EUR 770 million attached to it.

The controversial amendment stipulates that elected officials in office lose their mandate within 30 days if they receive a final decision of incompatibility or conflict of interest, even if this decision predates the new law. This means that the law would apply retroactively. In June, Romania's High Court of Cassation and Justice upheld a Timișoara Court of Appeal ruling that found Dominic Fritz in an administrative conflict of interest. 

As such, under the amendment, Fritz is expected to lose his position as mayor of Timișoara within 30 days of the legislation entering into force. The USR leader announced that he will challenge the decision at the European Court of Human Rights, and argued that the measure applies to a past action, although the Romanian Constitution states that laws should apply only to the future.

On course for adoption

After it was declared constitutional, the amended law was returned to Parliament and was adopted by the Chamber of Deputies with the votes of PSD, the National Liberal Party (PNL), and the minority Hungarian party UDMR. It still has to pass the Senate on Wednesday, August 26, and then go to president Nicusor Dan, who previously criticized the same "Fritz amendment," for promulgation before becoming law.

The supporters of the amended bill said its adoption secures EU funding, despite the retroactive application.

"For those who vote to violate the rule of law for fear of losing money from the PNRR: I am sure the European Commission will not accept rewarding such an abusive monstrosity with European taxpayers’ money," Fritz said on Facebook, in reaction to the bill's passing of the Chamber of Deputies.

Since the CCR decision, Fritz was also reconfirmed as leader of USR, which is part of the Renew Europe group in the European Parliament.

radu@romania-insider.com

(Photo source: Valerie Hayer and Manfred Weber on Facebook)