Recommendation for a COUNCIL RECOMMENDATION on the 2017 National Reform Programme of Romania and delivering a Council opinion on the 2017 Convergence Programme of Romania
Date: 2017-05-22
Institutions: European Commission, Secretariat-General
Subjects: Romania, access to education, economic policy, economic reform, employment policy, health care system, public service, retirement conditions, stability programme, tax collection

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   EUROPEAN COMMISSION  Brussels, 22.5.2017  COM(2017) 522 final   Recommendation for a COUNCIL RECOMMENDATION on the 2017 National Reform Programme of Romania  and delivering a Council opinion on the 2017 Convergence Programme of Romania  
 
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2017 National Reform Programme of Romania 

and delivering a Council opinion on the 2017 Convergence Programme of Romania 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 121(2) and 148(4) thereof, 

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the  surveillance  of  budgetary  positions  and  the  surveillance  and  coordination  of  economic 
policies,1 and in particular Article 9(2) thereof, 
Having regard to the recommendation of the European Commission,2 
Having regard to the resolutions of the European Parliament,3 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

(1) 

(2) 

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On  16 November  2016,  the  Commission  adopted  the  Annual  Growth  Survey,4 
marking  the  start  of  the  2017  European  Semester  of  economic  policy  coordination. 
The priorities of the Annual Growth Survey were endorsed by the European Council 
on  9-10 March  2017.  On  16 November  2016,  on  the  basis  of  Regulation  (EU) 
No 1176/2011,  the  Commission  adopted  the  Alert  Mechanism  Report,5  in  which  it 
did not identify Romania as one of the Member States for which an in-depth review 
would be carried out.  
The  2017  country  report  for  Romania6  was  published  on  22 February  2017.  It 
assessed  Romania’s  progress  in  addressing  the  country-specific  recommendations 
adopted by the Council on 12 July 2016, the follow-up given to the recommendations 
adopted in previous years and Romania’s progress towards its national Europe 2020 
targets. 

OJ L 209, 2.8.1997, p. 1. 
COM(2017) 522 final. 
P8_ TA(2017)0038, P8_ TA(2017)0039, and P8_ TA(2017)0040. 
COM(2016) 725 final. 
COM(2016) 728 final. 
SWD(2017) 88 final. 

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(4) 

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On  5  May  2017,  Romania  submitted  its  2017 National  Reform  Programme  and  its 
2017  Convergence  Programme.  To  take  account  of  their  interlinkages,  the  two 
programmes have been assessed at the same time. 

The relevant country-specific recommendations have been taken into account in the 
Member States' programmes for the European Structural and Investment Funds (ESI 
Funds) covering the 2014-2020 period. As foreseen in the legislation governing the 
ESI Funds,7 where it is necessary to support the implementation of relevant country-
specific  recommendations,  the  Commission  may  request  a  Member  State  to  review 
and  amend  its  relevant  ESI  Funds  programmes.  The  Commission  has  provided 
further guidelines on the application of those rules.8 

Between  2009  and  2015,  Romania  benefited  from  three  balance  of  payments 
assistance  programmes  jointly  run  by  the  Commission  and  the  International 
Monetary  Fund  and  supported  by  the  World  Bank.  Disbursements  were  only  made 
under the first programme in 2009-2011, while those in 2011-13 and 2013-15 were 
precautionary. Post-programme surveillance on behalf of the Commission to monitor 
Romania’s capacity to repay the loans granted under the first programme started in 
October 2015 and will continue until at least 70 % of the loan has been repaid, which 
is due in spring 2018.  

Romania is  currently in the preventive arm of the Stability and  Growth Pact. In  its 
2017  Convergence Programme, the government plans a headline deficit of 2.9%  of 
GDP both in 2017 and 2018, and its gradual reduction thereafter, to 2.0% of GDP by 
2020.  The  medium-term  budgetary  objective,  a  structural  deficit  of  1%  of  GDP,  is 
not  expected  to  be  reached  by  2020,  which  is  the  programme  horizon.  The 
recalculated9 structural balance is expected to reach -2.6% by 2020. According to the 
Convergence  Programme,  the general  government  debt-to-GDP ratio is expected to 
increase from 37.6% of GDP in 2016 to 38.3% of GDP in 2018 and then decline to 
37.6% of GDP in 2020. The macroeconomic scenario underpinning these budgetary 
projections  is  favourable.  The  main  downward  risk  to  the  macroeconomic  outlook 
stems  from  a  lower  impact  of  fiscal  and  structural  measures  on  near  and  medium-
term growth prospects. At the same time, the measures needed to support the planned 
deficit targets have not been sufficiently specified. Moreover, the draft unified wage 
law poses a significant downward risk to the fiscal forecast. 

On 12 July 2016, the Council recommended Romania to limit the deviation from the 
medium-term budgetary objective in 2016 and achieve an annual fiscal adjustment of 
0.5% of GDP in 2017 unless the medium-term budgetary objective is respected with 
a lower effort. Based on 2016 outturn data Romania was found to be in significant 
deviation  from  the  medium-term  budgetary  objective.  In  line  with  Article  121(4) 
TFEU  and  Article  10(2)  of  Council  Regulation  (EC)  No  1466/97,  the  Commission 
issued a warning to Romania on 22 May 2017 that a significant deviation from the 

Article  23  of  Regulation  (EU)  No  1303/2013  of  the  European  Parliament  and  of  the  Council  of  17 
December  2013  laying  down  common  provisions  on  the  European  Regional  Development  Fund,  the 
European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and 
the  European  Maritime  and  Fisheries  Fund  and  laying  down  general  provisions  on  the  European 
Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime 
and  Fisheries  Fund  and  repealing  Council  Regulation  (EC)  No  1083/2006,  OJ  L  347,  20.12.2013,  p. 
320. 
COM(2014) 494 final. 
Cyclically-adjusted  balance  net  of  one-off  and  temporary  measures,  recalculated  by  the  Commission 
using the commonly agreed methodology. 

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medium-term  budgetary  objective  was  observed  in  2016.  [On  XX,  the  Council 
adopted a subsequent recommendation confirming the need for Romania to take the 
necessary  measures  to  ensure  that  the  nominal  growth  rate  of  net  primary 
government expenditure10 does not exceed 3.3% in 2017, corresponding to an annual 
structural  adjustment  of  0.5%  of  GDP.]  Based  on  the  Commission  2017  spring 
forecast, there is a risk of a significant deviation from the recommended adjustment 
in 2017.  

In  2018,  in  the  light  of  its  fiscal  situation,  Romania  is  expected  to  further  adjust 
towards  its medium-term budgetary  objective of a  structural  deficit of 1%  of GDP. 
According  to  the  commonly  agreed  adjustment  matrix  under  the  Stability  and 
Growth Pact, that adjustment translates into a requirement of a nominal growth rate 
of  net  primary  government  expenditure  which  does  not  exceed  4.3%.  It  would 
correspond  to  a  structural  adjustment  of  0.5  %  of  GDP.  Under  unchanged  policies, 
there is a risk of a significant deviation from that requirement in 2018. In addition, 
the Commission 2017 spring forecast projected a general government deficit of 3.5% 
and 3.7% of GDP for 2017 and 2018, above the 3%-of-GDP reference value of the 
Treaty. Overall, the Council is of the opinion that significant further measures will be 
needed as of 2017 to comply with the provisions of the Stability and Growth Pact, in 
light  of  a  strongly  deteriorating  fiscal  outlook[,  in  line  with  the  recommendation 
addressed to Romania on XX with a view to correcting the significant deviation from 
the adjustment path toward the medium-term budgetary objective]. 

Romania’s  fiscal  framework  is  sound,  but  is  not  fully  enforced.  The  2016  budget 
substantially departed from the medium-term objective of a structural deficit of 1 % 
of  GDP  in  breach  of  the  deficit  rule  in  the  national  fiscal  framework.  The  2017 
budget further deviated from the national fiscal rules. In 2016, as in previous years, 
the authorities did not send an update of the fiscal strategy to the parliament by the 
statutory August deadline. As a result, the medium-term fiscal strategy has not been 
guiding the annual budget process. 

On the back of comfortable capital buffers and increasing profitability, the health of 
the  banking  sector  continued  to  improve  in  2016.  The  authorities  committed  to 
perform a comprehensive asset quality review and stress test of the banking sector in 
2018.  The  law  on  debt  discharge  entered  into  force  in  May  2016,  but  risks  to  the 
banking sector have been largely mitigated by a ruling of the constitutional court that 
courts  will  have  to  assess  whether  borrowers  comply  with  the  legal  provisions  on 
hardship.  The  CHF-denominated  loan  conversion  law  adopted  by  the  parliament  in 
October 2016 was recently judged non-constitutional. However, recurrent legislative 
initiatives continue to  challenge  legal  predictability,  with  possible  negative  impacts 
on investor sentiment. 

Tax evasion has been prevalent in Romania, reducing tax revenues and tax fairness 
and  distorting  the  economy.  In  addressing  a  country-specific  recommendation  to 
strengthen  tax  compliance  and  collection,  Romania  has  made  limited  progress.  In 
2016, the procedures for VAT registration and reimbursement were amended, and a 
nation-wide  roll-out of  electronic  cash  registers  connected  to  the  tax  authority  is 

Net  government  expenditure  is  comprised  of  total  government  expenditure  excluding  interest 
expenditure,  expenditure  on  Union  programmes  fully  matched  by  Union  funds  revenue  and  non-
discretionary  changes  in  unemployment  benefit  expenditure.  Nationally  financed  gross  fixed  capital 
formation  is  smoothed  over  a  4-year  period.  Discretionary  revenue  measures  or  revenue  increases 
mandated by law are factored in. One-off measures on both the revenue and expenditure sides are netted 
out. 

(8) 

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underway. From 2017, a special scheme applies to sectors such as the hotel, catering 
and  other  related  industries,  where  the  duty  is  established  irrespective  of  revenue 
bracket.  In  addition,  restrictions  were  also  adopted  on  self-employment  and  family 
businesses,  to  discourage  tax  avoidance.  An  improvement  in  compliance  was 
observed  in  2016  for  tax  declarations  and  payments,  but  the  joint  tax  and  labour 
inspections and audits failed to achieve improved results. Furthermore, the turnover 
threshold  for  the  tax  regime  on  micro  enterprises  was  substantially  increased  while 
the  rate  was  cut,  enabling  tax  compliance  to  the  detriment  of  budgetary  revenues. 
The  sectorial  and  categorical  approaches  to  business  taxation  risk  imposing  an 
administrative  burden  on  both  businesses  and  the  tax  authority,  while  they  are  not 
conducive to improving tax collection. 

The  distribution  of  disposable  household  income  (accounting  for  the  size  of  the 
household)  is  particularly  unequal  in  Romania,  thereby  impairing  its  potential  for 
sustainable and inclusive growth. The richest 20 % of the population have an income 
over eight times higher than the poorest 20 %. This ratio is significantly higher than 
the EU average. Inequalities are driven to a large extent by unequal access to health 
care,  education,  services  and  access  to  labour  market.  Moreover,  the  difference 
between income inequality before and after taxes and social transfers is amongst the 
smallest in the EU. The social reference index at the basis of the main social benefits 
has  not  been  updated  since  its  introduction  in  2008.  Undeclared  work  including 
envelope wages remains prevalent and continues to weigh on tax revenue, distort the 
economy,  and  undermine  the  fairness  and  effectiveness  of  the  tax  and  benefits 
system.  Joint  national  inspections  by  the  Fiscal  Administration  and  labour 
inspectorates were undertaken as part of a pilot project, but this has failed to have a 
systemic impact so far. Resources are not focused on sectors with the highest risks of 
tax  evasion,  limited  focus  is  given  on  envelope  wages,  while  coercive  measures 
prevail over preventive ones.  

Labour market outcomes improved in 2016, when the unemployment rate reached its 
pre-crisis low. The labour force continues to shrink, as the population is ageing and 
emigration  remains  high.  Low  unemployment  is  matched  by  one  of  the  highest 
inactivity rates in the EU. Employment and activity rates for young people, women, 
the  low-skilled,  people  with  disabilities  and  Roma  in  particular  are  well  below  the 
EU average. The number of young people not in employment, education or training 
remains very high. 

Although  declining,  the  risk  of  poverty  or  social  exclusion  has  been  very  high,  in 
particular  for  families  with  children,  people  with  disabilities,  Roma,  and  the  rural 
population. In 2016, a comprehensive anti-poverty package was adopted in a policy 
shift  toward  the  enhanced  provision  of  services  catered  to  specific  groups  of  the 
population. It envisages a pilot project setting up integrated services in marginalised 
communities.  A  nation-wide  roll-out  would  significantly  improve  the currently  low 
country-specific 
services.  Addressing 
provision  of 
recommendations, the law on the minimum inclusion income was adopted, to enter 
into  force  in  2018.  The  minimum  inclusion  income  increases  the  adequacy  and 
coverage  of  social  assistance.  It  combines  passive  support  with  compulsory  active 
labour market measures and inspections. Its activation potential is modest though, as 
the  target  is  to  reach  25 %  of  the  beneficiaries  by  active  labour  market  policy 
measures by 2021. 

successive 

integrated 

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Activation policies have been strengthened in the context of reforming the National 
Employment  Agency.  Reforms  include  more  tailor-made  support  and  integrated 

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services  to  jobseekers  and  employers.  The  outreach  and  service  offered  to  young 
people  not  in  employment,  education  or  training  is  being  improved.  However, 
activation policies offered to groups furthest away from labour market remain limited 
and recently proposed activation measures no longer focus on these specific groups. 
Their scale and link to social services is insufficient to significantly improve labour 
force participation for these groups in particular. 

Pension adequacy and old-age poverty have significant gender dimensions as, all else 
being  equal, lower retirement ages  for women  result in lower pension entitlements. 
Romania  is  among  the  very  few  EU  countries  that  do  not  provide  for  the 
convergence  of  women’s  retirement  ages  to  men’s.  The  law  on  equalisation  of 
pensionable ages for  men and women was submitted to  the parliament in  2013. So 
far it has only been adopted by the Senate.  

Given  productivity  developments,  income  convergence  and  the  competitiveness 
position  of  Romania,  increases  in  public  and  private  sector  wages  deserve  special 
attention. Public wage increases have the potential to spill over to the private sector, 
impacting  Romania’s  competitiveness.  Romania’s  minimum  wage  level,  while  still 
among  the  lowest  in  the  EU,  has  increased  significantly  in  recent  years.  Ad  hoc 
minimum wage increases have significantly raised the share of workers earning the 
minimum wage and led to strong compression at the bottom of the wage distribution 
recently. Addressing a country-specific recommendation, a tripartite working group 
to  establish  a  mechanism  for  minimum  wage-setting  based  on  objective  economic, 
labour  market  and  social  criteria  was  established  in  early  2016  but  work  suffered 
significant  delays  and  needs  to  be  adequately  taken  up.  Social  dialogue  remains 
characterised  by  low  collective  bargaining  at  sector  level  and  by  institutional 
weaknesses that limit the effectiveness of reforms.  

Sufficient  basic  skills  are  key  to  finding  and  keeping  good  and  stable  jobs  and 
successfully participating in economic and social life. International surveys point to 
severe  deficiencies  in  basic  skills  among  Romanian  teenagers.  High  early  school 
leaving  rates,  low  higher  education  attainment,  and  high  emigration  result  in  the 
under-supply of skilled labour. Access to quality mainstream education is limited in 
rural areas and for Roma children in particular. The difficulty to attract good teachers 
in  rural  areas  and  Roma-predominant  schools,  coupled  with  segregation  and  often 
discriminatory attitudes, result in lower educational achievement of Roma children. 
In  response  to  repeated  country-specific  recommendations,  Romania  adopted  and 
started  implementing  a  strategy  on  early  school  leaving.  Recent  measures  include 
integrated interventions, a warm meal pilot programme, improved reimbursement of 
commuting  costs,  and  social  vouchers  to  encourage  poor  children’s  pre-school 
education.  Project-based  measures  with  EU  funding  to  improve  the  quality  of 
teaching  in  disadvantaged  schools  are  planned  for  autumn  2017,  and  the 
modernisation  of  the  curricula,  albeit  incomplete,  is  underway.  Anti-segregation 
legislation  was  improved,  including  the  reinforcement  of  school  inspectorates’ 
mandate  in  this  area.  However,  a  monitoring  methodology  is  still  missing.  Further 
steps  are  needed  for  sustained  progress  in  fighting  socioeconomic  inequalities  in 
education.  The  Youth  Guarantee  has  only  partially  reached  early  school  leavers  so 
far  and  second  chance  programmes  are  not  readily  available.  The  vocational 
education  and  training  system  is  not  sufficiently  aligned  with  labour  market  needs, 
and participation in adult learning is very low.  

(19) 

Romania’s  population  is  exposed  to  poor  health  outcomes.  Accessible  quality 
healthcare is impaired by shortages of health professionals, under-funding and over-

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reliance  on  hospitals,  and  corruption,  affecting  people  with  low  income  and  rural 
areas  in  particular.  Beside  informal  payments  to  medical  professionals,  corruption 
concerns  public  procurement  in  hospitals,  insurance  fraud,  and  bribery  for 
certificates  giving  entitlement 
to  benefits.  Addressing  a  country-specific 
recommendation and in the context of ex-ante conditionality for the 2014-2020 EU 
funding period, Romania took some policy action to shift from inpatient to outpatient 
care.  Regional  healthcare  plans  were  developed  to  identify  needs  for  infrastructure 
and  services,  and  the  implementation  of  the  national  health  strategy  is  being 
monitored.  In  line  with  the  national  anti-corruption  strategy  2016-2020,  legislation 
was  adopted  to  revamp  the  feedback  system  on  informal  payments,  and  health 
professionals’  salaries  were  improved.  The  anti-corruption  strategy  comprises  of 
comprehensive  measures  in  healthcare,  including  fostering  the  accountability  and 
transparent  recruitment  of  hospital  managers.  Nonetheless,  the  reinforcement  of 
community  care,  ambulatory  care,  and  referral  systems  is  still  in  an  initial  stage, 
informal payments remain prevalent, transparency in hospital management is yet to 
be ensured, and a national health workforce strategy is pending adoption.  

Romania’s  administrative  and  policy-making  capacity  has  been  suffering  from 
opaque processes and decision-making, burdensome administrative procedures, little 
recourse  to  quality  evidence,  weak  coordination  across  sectorial  policies,  and 
widespread  corruption.  Progress  in  public  administration  reform  has  been  limited. 
Organisational  structures  remain  unstable,  which  affects  the  independence  and 
effectiveness  of  public  administration.  Civil  service  strategies  were  launched  in 
2016,  but  the  legislative  framework  does  not  incorporate  yet  some  of  their  main 
objectives,  especially  as  regards  objective  criteria  for  staff  recruitment,  assessment 
and  reward  of  performance.  Pay  levels  are  proposed  to  be  harmonised  to  some 
extent,  but  there  is  no  clear  link  between  performance  and  remuneration,  at  central 
and local levels. The capacity and authority of the Civil Service Agency still needs to 
be  strengthened.  Some  of  the  transparency  measures  in  policy  making,  initiated  in 
2016,  have  been  set  for  reversion.  Strategic  planning  and  regulatory  impact 
assessment are not firmly established in administrative practice.  

Insufficient transport infrastructure in quality and quantity  has  been among the key 
bottlenecks  to  economic  development  in  Romania.  To  confront  the  associated 
deficiencies, in response to a country-specific recommendation, Romania adopted the 
transport master plan in autumn 2016. To speed up investment in road infrastructure, 
the management of infrastructure investments was split from the authority in charge 
of  infrastructure  administration.  A  body  was  established  in  2016  to  reform  the 
railway system, to be operational by mid-2017. 

Romania has had one of the highest investment ratios in the EU lately. However in 
2016,  public  investment  declined,  also  due  to  a  low  implementation  of  EU  funds. 
High  absorption and  efficient  use  of  EU  funding  are  critical  for  Romania to  tap its 
development  potential,  in  key  sectors  such  as  transport  or  waste  in  particular.  The 
quality  of  public  investment  has  been  impaired  by  management  deficiencies  and 
changing priorities among others. In response to a country-specific recommendation, 
little progress was made with strengthening project prioritisation and preparation in 
public  investment.  Since  August  2016,  ministries  need  to  consider  the  investment 
priorities in their spending plans, but no other steps were taken to enhance the role of 
the  Ministry  of  Finance  in  investment  prioritisation  and  to  better  coordinate  the 
preparation  of  public  investment  projects  across  ministries.  The  adoption  of  the 
national  waste  management  plan  and  waste  prevention  programme  expected  by  the  

(20) 

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(22) 

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(24) 

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end of 2016 is still pending. The plans are also needed to improve governance and 
regulatory  enforcement  to  channel  national  and  EU  funds  to  attain  EU-level 
environmental standards. 

Efficient public procurement is key for attaining strategic objectives and addressing 
key  policy  challenges  to  Romania,  including  efficient  public  spending,  the 
modernisation  of  public  administration,  the  fight  against  corruption,  and  fostering 
innovation  and  sustainable  and  inclusive  growth.  It  is  also instrumental  to  citizens’ 
trust  in  public  authorities  and  democracy.  Romania  took  steps  to  implement  the 
public  procurement  strategy  and  action  plan  lately.  As  a  follow-up  to  the  public 
procurement law in force since May 2016, implementing legislation was adopted by 
the  end  of  2016,  and  the  national  agenda  for  public  procurement  provides  for 
corruption prevention and control. However, several key measures in the strategy are 
still  pending,  such  as  reinforced  controls  and  other  anti-corruption  measures,  the 
implementation of e-procurement, and the training of public procurement officers.  

Over  45 %  of  Romania’s  population  live  in  rural  areas,  which  remain  far  behind 
urban  areas  in  terms  of  employment  and  education,  access  to  services  and 
infrastructure,  and  material  well-being.  In  response 
to  a  country-specific 
recommendation  to  improve  access  to  integrated  public  services,  extend  basic 
infrastructure and foster economic diversification in rural areas in particular, in 2016 
Romania  adopted  a  comprehensive  set  of  measures  on  rural  development,  on 
modernising  small  farms,  supporting  non-agricultural  SMEs, 
in 
infrastructure, including social services and education, and formalising employment. 
Their longer-term success will hinge on the capacity to roll-out the pilot actions on a 
larger scale, and to effectively target and absorb available EU funding. 

investment 

State-owned  enterprises  (SOEs)  play  a  major  role  in  the  economy,  in  particular  in 
key  infrastructure  sectors.  Weaknesses  in  SOE’s  governance  translate  into  their 
lower  profitability  relative  to  private  counterparts,  with  negative  impacts  on  public 
finance.  Addressing  a  country-specific  recommendation,  Romania  achieved 
substantial progress to improve SOE corporate governance. The by-laws supporting 
the  main  legislation  on  SOE  corporate  governance  were  swiftly  adopted  in  autumn 
2016. The legislative framework follows good international practice on transparency 
in  the  appointment  of  board  members  and  the  management  of  SOEs,  and  provides 
the  Ministry  of  Finance  with  specific  powers  of  monitoring  and  enforcement. 
Measures  were  also  taken  to  raise  awareness  of  the  new  rules  among  local 
authorities, and budgetary information on SOEs was made public. However, delays 
in 
further 
implementation.  

the  appointment  of  professional  managers 

raise  concern  on 

Romania’s  competitiveness  has  been  suffering  from  weaknesses  in  non-cost 
competitiveness  and  structural  barriers  to  the  transition  to  a  higher  value  added 
economy,  complex  administrative  procedures  being  among  these.  Addressing  a 
country-specific recommendation in 2016, Romania adopted several legislative acts 
to simplify administrative procedures and facilitate the relation between citizens and 
public administration, albeit limited to a small number of procedures.  

Corruption persists at all levels and remains an obstacle for doing business. Romania 
made  substantial  progress  on  much  of  the  reform  of  the  judicial  system  and  in 
tackling  high-level  corruption.  However,  key  steps  remain  to  address  concerns  in 
these areas so that reforms are sustainable and irreversible. Some progress was made 
on developing further measures to prevent and fight corruption, in particular within 

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local government, but significant challenges remain in the effective implementation 
of the national anti-corruption strategy adopted in 2016. Efforts are required  on the 
respect for judicial independence in Romania’s public life, finalising reforms of the 
criminal  and  civil  codes  and  ensuring  efficiency  in  the  implementation  of  court 
decisions.  Under  the  Cooperation  and  Verification  Mechanism,  Romania  receives 
recommendations  in  the  areas  of  judicial  reform  and  the  fight  against  corruption. 
These  areas  are  therefore  not  covered  in  the  country-specific  recommendations  for 
Romania. 

In  the  context  of  the  European  Semester  the  Commission  has  carried  out  a 
comprehensive analysis of Romania’s economic policy and published it in the 2017 
country  report.  It  has  also  assessed  the  Convergence  Programme  and  the  National 
Reform  Programme  and  the  follow-up  given  to  the  recommendations  addressed  to 
Romania  in  previous  years.  It  has  taken  into  account  not  only  their  relevance  for 
sustainable  fiscal  and  socioeconomic  policy  in  Romania,  but  also  their  compliance 
with EU rules and guidance, given the need to strengthen the EU’s overall economic 
governance by providing EU-level input into future national decisions.  

(28) 

(29) 

In  the  light  of  this  assessment,  the  Council  has  examined  the  Convergence 
Programme and its opinion11 is reflected in particular in recommendation 1 below, 

HEREBY RECOMMENDS that Romania take action in 2017 and 2018 to: 

1. 

2. 

3. 

In 2017, ensure compliance with the Council recommendation of [XX] with a view 
to correcting the significant deviation from the adjustment path toward the medium-
term  budgetary  objective.  In  2018,  pursue  its  fiscal  policy  in  line  with  the 
requirements of the preventive arm of the Stability and Growth Pact, which translates 
into  a  substantial  fiscal  effort  for  2018.  Ensure  the  full  application  of  the  fiscal 
framework.  Strengthen  tax  compliance  and  collection.  Fight  undeclared  work, 
including by ensuring the systematic use of integrated controls. 

Strengthen  targeted  activation  policies  and  integrated  public  services,  focusing  on 
those furthest away from the labour market. Adopt legislation equalising the pension 
age  for  men  and  women.  Establish  a  transparent  mechanism  for  minimum  wage-
setting,  in  consultation  with  social  partners.  Improve  access  to  quality  mainstream 
education, in particular for Roma and  children in  rural areas. In  healthcare,  shift to 
outpatient care, and curb informal payments. 

Adopt  legislation  to  ensure  a  professional  and  independent  civil  service,  applying 
objective  criteria.  Strengthen  project  prioritisation  and  preparation  in  public 
investment.  Ensure  the  timely  full  and  sustainable  implementation  of  the  national 
public procurement strategy. 

Done at Brussels, 

For the Council 
The President 

11 

Under Article 9(2) of Council Regulation (EC) No 1466/97. 

EN 

9 

   EN