Romania has to fulfil a number of 45 targets and milestones in order to unlock over EUR 15 billion under the Recovery and Resilience Facility (RRF) scheme, according to a document discussed on May 14 by the interim government of interim prime minister Ilie Bolojan. According to the note drafted by the Ministry of Investments and European Funds, the figure represents the amount at risk and exceeds the EUR 10.7 billion (including the EUR 2.6 billion greenlighted by the European Commission as the fourth payment) still to be disbursed by the end of the scheme, since it includes money to be returned in case some investment projects are not completed. 

The note has the role of establishing an action plan for the full absorption of the RRF funds, which therefore seems to depend on the functioning of the government (even under its current interim capacity) and the public administration (EUR 7.3 billion), but also on political support in parliament (EUR 7.8 billion). For the investment projects that need to be completed within the RRF time framework (by the end of August), PM Bolojan pledged to take action and make available the necessary funds so that the contractors are paid and encouraged to keep working.

Only 7 targets and milestones of the 45 are already fulfilled, with another 38 to be completed by the end of August, Digi24 reported.

The overall figure (38) includes 11 targets and milestones envisaging reforms with significant impact (on the functioning of the Romanian state), requiring approval by the parliament of 9 laws and two Government Decisions (HG) and unblocking EUR 7.5 billion of RRF funds. This set of targets and milestones requires political support in parliament.

The government will submit to parliament the nine bills in three bundles starting on May 15, but no later than May 31. For some of them, the government still expects the European Commission’s green light (and will be sent to lawmakers by May 22) or is still under discussion with the Commission (and will be sent to lawmakers by the end of May). 

Two of the 38 due targets and milestones represent reforms without a significant impact, and therefore can be fulfilled by the government through Government Decisions, not requiring the parliament’s approval. The two of them, including the restructuring of three state-owned enterprises, have EUR 0.33 billion attached.

Finally, a number of 25 targets and milestones, out of which only 3 have a significant impact, are to be fulfilled by the government’s ministries without requiring a normative act to be approved. They have EUR 7.3 billion attached and generally refer to the completion of acquisitions and investment projects coordinated by ministries. 

In a press conference after the government meeting on May 14, PM Bolojan assured that the government's goal is to bring payments to contractors working on projects under the RRF up to date in the next two to three weeks. The bonuses paid to public servants working to implement such projects will be redesigned for better effects, he added.

He pointed out that an important problem is that "many ministries have long delayed their payments to contractors, construction companies, in some cases by weeks or months, therefore it is difficult to assume that the contractors would allocate sufficient resources to complete the projects."

"The goal is to bring these payments up to date in the next two or three weeks. We will discuss with all partners, with all beneficiaries [of RRF funds]  to understand the responsibility they have, because if the projects that remain on the grant component are not completed, not only will we lose money, but we will also have some penalties and we cannot afford this, and each beneficiary, whether it is from the public sector, whether it is from the private sector, city hall, county council, ministry, private companies, must understand the responsibility they have, so that we can absorb this money," the interim prime minister emphasized, as quoted by Cursdeguvernare.ro.

Bolojan also indicated that "they will ensure total transparency in the way in which the withdrawals and payments are made and, in this regard, every week the degree of absorption and the payments that have been made by each ministry will be made public, so that, on the one hand, there is public pressure and everyone knows that it is no longer a joke and, also, there is monitoring of the way in which work is done in each ministry."

The interim prime minister also said that this week, the government decision on linking European fund bonuses to performance was discussed in the first reading.

iulian@romania-insider.com

(Photo source: Marian Vejcik/Dreamstime.com)