The government of Romania said on September 3 that it was taking steps to ensure the country fully collects the EUR 770 million Recovery and Resilience Facility (RRF) grant linked to the new Integrity Agency (ANI) Law, while acknowledging that the legislation may have to be amended if it is found not to comply with European law.

The statement came after the European Commission requested clarifications from Romania on the law, particularly regarding an amendment that could have retroactive effects on local elected officials, including Timisoara mayor Dominic Fritz, president of the reformist Save Romania Union (USR). The EC has asked Romania to explain how the legislation can produce retroactive effects while itself being non-retroactive and whether the provisions comply with the principles of legal certainty and proportionality.

The government said that any incompatibility with European principles must be "corrected quickly", otherwise "significant risks" could arise. Acting prime minister Ilie Bolojan and foreign minister Oana Țoiu requested an urgent assessment of the law's compliance with European principles during a technical meeting with the European Commissioner for Justice, Michael McGrath, and Commission officials.

The government categorically denied reports that the Commission had requested or suggested a cut in European funds. "The government is taking all steps to ensure that Romania will fully collect the EUR 770 million related to the RRF/PNRR milestone regarding the new integrity legislation," its statement said, stressing that the absorption of available EU funds remains a priority.

However, the government's acknowledgement that the law may have to be corrected represents a significant change in tone from earlier assurances that the legislation fully met the Commission's requirements. Investment and European projects minister Dragos Pislaru said in a Digi24 interview that Romania had asked the Commission to accelerate its assessment precisely to allow Parliament to amend the controversial provision quickly if an incompatibility with the European treaties is identified.

The clarification concerns the amendment commonly referred to as the "Fritz amendment", which introduces additional consequences for integrity violations committed in the past and could result in the termination of mandates of elected officials. The provision has triggered strong opposition from USR and generated concerns at the European level over its potential retroactive effects. Romania’s Constitutional Court has already cleared the provision affecting elected officials.

The ANI Law is included in Romania's sixth and final RRF payment request. The Commission's assessment therefore has a direct bearing on the EUR 770 million grant attached to the milestone. The current situation does not mean that Romania has lost the money, but it does introduce a new risk: if the Commission concludes that the law does not meet the agreed requirements, Romania may have to amend it before the milestone can be considered fulfilled.

This also makes the timing important. Romania is simultaneously trying to legislate a new Wage Law by the end of October in an effort to recover at least part of the separate EUR 770 million grant initially linked to that reform. The two cases underline the increasing importance of the final RRF milestones: with the programme approaching its end, Romania has considerably less room for political or legislative slippage.

iulian@romania-insider.com

(Photo source: Gov.ro)