Romania is expected to promulgate four out of the six laws supposed to unlock EUR 5 billion of grants under the European Union’s Resilience Facility (RRF), after the Senate failed to endorse the Integrity Law on July 30, according to ProTV. The four laws, having received final green light from Parliament, two in the Chamber of Deputies and two in the Senate, unlock EUR 3.5 billion of grants, if assessed positively by the European Commission. 

Two last-minute amendments filed in the Senate by the Social Democrats (PSD) to the Integrity Law, approved by the Chamber of Deputies on the day before, prompted negative votes from Save Romania Union (USR) and the Liberal Party (PNL) – which plan to resume the legislation procedure next week. The amendments were specifically aimed at retroactively stripping USR president Dominic Fritz of its mayoral seat in Timisoara.

The Integrity Law has a EUR 770 million grant attached, just like the Wage Law for the budgetary sector – the sixth law that was not yet filed for a vote in parliament due to massive protests of the trade unions and a lack of consensus among political parties.

The four reforms passed by the Parliament should bring EUR 3.5 billion in grants, if promulgated by the end of August.

Urban Planning Code / Senate

The first reform, worth EUR 972 million under PNRR, the Urban Planning Code attempts to bring together in a single normative act the rules regarding territorial planning and construction authorisation. The project should merge provisions from the current legislation, simplify procedures and introduce more digitalisation. It was approved by the Senate and will be sent to the President for promulgation.

For Bucharest, one of the most disputed provisions concerns building permits. The referendum held among Bucharest residents during the 2024 local elections provided for the transfer of this competence from the district mayors to the City Hall of the Capital. 

The bill has been in Parliament since 2023 and was tacitly adopted by the Senate. After several years of deadlock, this week's vote should determine the final shape of one of the most far-reaching reforms in construction. 

Decarbonising heating / Senate

The second reform, worth EUR 972 million, concerns the decarbonization of the heating and cooling sector. The project aims to shift to heat pumps, solar energy, geothermal sources and other low-emission technologies. It also foresees a gradual reduction in the use of forest biomass and wood for heating. 

The first version of the bill was rejected by the Senate at the end of June, after not gathering enough votes. The reform was resumed, and PSD and UDMR submitted amendments. 

The vote has direct effects on investments in district heating and the modernisation of heating systems. 

It was approved by the Senate and will be sent to the President for promulgation.

Bonuses for ANAF and Customs employees / Chamber of Deputies

A third project introduces a system of rewarding employees of ANAF and the Customs Authority. Bonuses will depend on additional revenues brought to the budget and measurable performance indicators. The reform is associated with EUR 770 million in grants under the PNRR. 

The reward would be variable and temporary. The amounts awarded in a year cannot exceed 12% of the budget for basic salaries. For cases that bring the state over one million euros, the project provides for a separate reward, after the actual collection of the money and the final confirmation of the claim. 

The authors of the project claim that the system avoids turning bonuses into a permanent salary right. From a political point of view, the project has caused less tension. The Senate was the first chamber to be notified, and the final vote belonged to the Chamber of Deputies.

Civil servant career / Chamber of Deputies

The amendment to the Administrative Code regulates the career of civil servants and the management of contractual personnel. It concerns recruitment, competitions, promotion and performance evaluation. This reform is also linked to EUR 770 million from the PNRR. 

The stated goal is to build a system based on competencies and results. The project should clarify the career path of civil servants and the criteria used to fill management positions.

Here too, there is no indication of a political conflict comparable to the disputes over salary or integrity. PSD has announced that it supports the project. The Senate was the first chamber to be notified, and the final vote belonged to the Chamber of Deputies.

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)