Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Romania
Date: 2021-09-27
Institutions: European Commission, Secretariat-General
Subjects: EU aid, EU loan, Romania, coronavirus disease, economic and social cohesion, economic recovery, economic reform, epidemic, investment, structural adjustment

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   EUROPEAN COMMISSION  Brussels, 27.9.2021  COM(2021) 608 final 2021/0309 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Romania {SWD(2021) 276 final}  
 
2021/0309 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

on the approval of the assessment of the recovery and resilience plan for Romania 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 
12 February 2021 establishing the Recovery and Resilience Facility1 and in particular Article 
20 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

The COVID-19 outbreak has had a disruptive impact on the economy of Romania. In 
2019,  the  gross  domestic  product  (GDP  per  capita)  of  Romania  was  36,8 %  of  the 
Union average. According to the Commission’s summer 2021 forecast, the real GDP 
of  Romania  declined  only  by  3,9 %  in  2020,  and  is  expected  to  increase  by  3,3 % 
cumulatively in 2020 and 2021. Long standing issues with an impact on medium-term 
economic  performance  include  risks  arising  from  the  deterioration  of  the  current 
account  and  from  the  loss  of  competitiveness  which  could  negatively  feed  back  into 
the  former,  and  an  accelerating  government  debt.  Red  tape  and  the  insufficient 
capacity  of  public  authorities  to  deliver  quality  services,  including  digital  services, 
negatively  affect  citizens  and  businesses,  especially  small  and  medium-sized 
enterprises  (SMEs),  while  the  delivery  of  major  reforms  and  public  investments  is 
strongly  linked  to  improving  governance.  At  the  same  time,  potential  output  and 
sustainable  and  inclusive  growth  are  negatively  affected  by  high  rates  of  risk  of 
poverty and social exclusion, which are some of the highest in the EU. 

On  9  July  2019  and  on  20  July  2020,  the  Council  addressed  recommendations  to 
Romania  in  the  context  of  the  European  Semester.  In  particular,  the  Council 
recommended  Romania  to  take  all  necessary  measures  to  effectively  address  the 
pandemic,  sustain  the  economy  and  support  the  ensuing  recovery  and  pursue  fiscal 
policies  to  put  an  end  to  the  excessive  deficit  situation.  Also  in  relation  to  public 
finances, the Council recommended strengthening tax compliance and tax collection, 
ensuring the sustainability of the public pension system and the long-term viability of 
the second pillar pension funds with comprehensive structural reforms and to avoid the 
implementation  of  permanent  measures  that  would  endanger  fiscal  sustainability. 
Moreover, the Council recommended to strengthen the resilience of the health system, 

1 

OJ L 57, 18.2.2021, p. 17-75. 

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that 

is  consistent  with 

including in the areas of health workers and medical products, and improve access and 
cost-efficiency  of  healthcare,  including  through  the  shift  to  outpatient  care. 
Particularly  relevant  to  social  challenges  were  the  recommendations  to  improve  the 
quality and inclusiveness of education, in particular for Roma and other disadvantaged 
groups,  improve  skills  by  increasing  the  labour  market  relevance  of  vocational 
education  and  training  and  higher  education,  increase  the  coverage  and  quality  of 
social services and complete the minimum inclusion income reform, as well as ensure 
job  creation  and 
objective  minimum  wage  setting 
competitiveness. In addition, the Council recommended Romania to provide adequate 
income  replacement  and  extend  social  protection  measures  and  access  to  essential 
services  for  all.  To  tackle  the  COVID-19  crisis,  Romania  was  recommended  to 
mitigate  the  employment  impact  of  the  crisis  by  developing  flexible  working 
arrangements and activation measures and to strengthen skills and digital learning and 
ensure  equal  access  to  education.  Furthermore,  Romania  was  recommended  to 
safeguard  financial  stability  and  the  robustness  of  the  banking  sector,  to  ensure 
liquidity  support  to  the  economy  benefitting  businesses  and  households,  particularly 
small and  medium-sized  enterprises  and  the  self-employed  and  to  front-load  mature 
public  investment  projects  and  promote  private  investment  to  foster  the  economic 
recovery.  It  was  recommended  to  focus  the  investments on  the  green  and  digital 
transition,  in  particular  on sustainable  transport, digital  service  infrastructure, clean 
and  efficient  production  and  use  of  energy  and  environmental  infrastructure,  taking 
into  account  regional  disparities,  including  in  the  coal  regions.  The  Council  also 
recommended  to  improve  the  quality  and  effectiveness  of  public  administration  and 
the  predictability  of  decision-making,  including  through  an  adequate  involvement  of 
social  partners,  as  well  as  to  strengthen  the  corporate  governance  of  state-owned 
enterprises. Having assessed progress in the implementation of those country-specific 
recommendations at the time of submission of the recovery and resilience plan (RRP), 
the Commission finds that substantial progress has been achieved with respect to the 
country-specific recommendation to safeguard financial stability and the robustness of 
the  banking  sector  and  the  recommendation  on  immediate  fiscal  policy  response  to 
effectively  address  the  pandemic,  sustain  the  economy  and  support  the  ensuing 
recovery.  In  addition,  the  recommendation  to  maintain  adequate  liquidity  for  SMEs 
and self-employed has been fully implemented. 

(3) 

(4) 

On  2  June  2021,  the  Commission  published  an  in-depth  review  under  Article  5  of 
Regulation  (EU)  No  1176/2011  of  the  European  Parliament  and  of  the  Council2  for 
Romania. The Commission’s analysis led it to conclude that Romania is experiencing 
macroeconomic  imbalances,  related  in  particular  to  risks  of  cost  competitiveness 
losses,  a  deteriorating  external  position  and  a  widening  current  account  deficit,  in  a 
context of expansionary fiscal policy and an unpredictable business environment. 

On  31  May  2021  Romania  submitted  its  national  RRP  to  the  Commission,  in 
accordance with Article 18(1) of Regulation (EU) 2021/241. The submission followed 
a  consultation  process,  conducted  in  accordance  with  the  national  legal  framework, 
involving  local  and  regional  authorities,  social  partners,  civil  society  organisations, 
youth organisations and other relevant stakeholders. National ownership of the RRPs 
underpins  their  successful  implementation  and  lasting  impact  at  national  level  and 

2 

Regulation (EU) No 1176/2011 of the European Parliament and of the  Council of 16 November 2011 
on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25). 

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(5) 

(6) 

(7) 

(8) 

(9) 

credibility at European level. Pursuant to Article 19 of Regulation (EU) 2021/241, the 
Commission has assessed the relevance, effectiveness, efficiency and coherence of the 
RRP,  in  accordance  with  the  assessment  guidelines  offset  out  in  Annex  V  to  that 
Regulation. 

The  RRPs  should  pursue  the  general  objectives  of  the  Recovery  and  Resilience 
Facility established by Regulation (EU) 2021/241 (the 'Facility') and of the European 
Union Recovery Instrument set up by Council Regulation (EU) 2020/20943 in order to 
support  the  recovery  in  the  aftermath  of  the  COVID-19  crisis.  They  should  promote 
the Union's economic, social and territorial cohesion by contributing to the six pillars 
referred to in Article 3 of Regulation (EU) 2021/241. 

The implementation  of the Member States' RRPs will constitute a  coordinated effort 
involving  reforms  and  investments  across  the  Union.  Through  coordinated  and 
simultaneous  implementation  and  the  implementation  of  cross-border  and  multi-
country projects, such reforms and investments will mutually reinforce each other and 
generate positive spillovers across the Union. Therefore, about one third of the impact 
of the Facility on Member States' growth and job creation will come from spillovers 
from other Member States.  

Balanced response contributing to the six pillars 

In  accordance  with  Article  19(3),  point  (a),  of  and  Annex  V,  criterion  2.1,  to 
Regulation  (EU)  2021/241,  the  RRP  represents  to  a  large  extent  (Rating  A)  a 
comprehensive and adequately balanced response to the economic and social situation, 
thereby contributing appropriately to all of the six pillars referred to in Article 3 of that 
Regulation,  considering  the  specific  challenges  faced  by  Romania  and  taking  into 
account the financial contribution and the requested loan support.  

The  plan  follows  a  holistic  approach  to  achieve  recovery  and  increase  potential 
growth,  while  enhancing  socio-economic  and  institutional  resilience.  The  plan 
contains  mutually  reinforcing  and  coherent  reforms  and  investments  that  refer  to 
policy areas of European relevance structured around the six pillars. 

The  plan  has  a  strong  focus  on  the  green  transition  pillar  with  energy  and  climate 
related  measures,  with  flagship  reforms  on  the  phasing-out  of  coal  and  the 
decarbonisation  of  road  transport.  The  reforms  and  investments  are  expected  to 
significantly  decarbonise  the  energy  sector  and  unlock  the  potential  for  renewables 
deployment.  The  strong  focus  on  energy  efficiency  of  private  and  public  buildings, 
digitalisation  of  road  and  rail  transport  and  the  deployment  of  electric  charging 
infrastructures, climate change adaptation and circular economy, will also facilitate the 
green transition in all sectors of the economy. The plan also contributes to the digital 
transition. Measures contributing to digital objectives are present throughout the plan, 
across  the  different  components  and  focus  on  the  digitalisation  of  the  public 
administration  (including  health,  justice,  environment,  employment  and  social 
protection) and businesses, connectivity, cybersecurity and digital skills. 

(10)  Several  components  in  the  plan  have  the  potential  to  foster  smart  and  sustainable 
growth.  The  plan  contains  a  series  of  measures,  including  through  the  use  of  new 

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Council  Regulation  (EU)  2020/2094  of  14  December  2020  establishing  a  European  Union  Recovery 
Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I , 22.12.2020, p. 
23–27) 

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financial  instruments  and  the  creation  of  a  National  Development  Bank  that  are 
expected to directly or indirectly support private investments, including for small and 
medium-sized  enterprises  (SMEs),  increase  the  capacity  of  the  country  to  attract 
investment and create new businesses and jobs. The plan also aims to reinforce fiscal 
sustainability  through  important  reforms  of  the  tax  administration,  tax  framework, 
fiscal  management  and  the  pension  system.  The  plan  envisages  to  strengthen  social 
and  territorial  cohesion  through  structural  measures  on  the  labour  market  and 
important reforms and investments targeting both urban and rural development, which 
are expected to reduce territorial disparities at regional, intra-regional and intra-county 
level. 

(11)  The  proposed  reforms  and  investments  are  expected  to  strengthen  the  overall 
resilience  of  the  health  system,  including  its  digitalisation.  Finally,  measures  in  the 
plan  aim  to  help  the  next  generations  mainly  by  addressing  challenges  in  terms  of 
quality, equity and infrastructure in the educational system. The upgrade of school and 
university infrastructure in urban and rural areas, the digitalisation of education and a 
system  of  grants  to  reduce  the  drop-out  rate  are  the  main  measures  to  address  these 
challenges. 

Addressing  all  or  a  significant  subset  of  challenges  identified  in  country-specific 
recommendations 

(12) 

identified 

in  other  relevant  documents  officially  adopted  by 

In  accordance  with  Article  19(3),  point  (b),  of  and  Annex  V,  criterion  2.2,  to 
Regulation (EU) 2021/241, the RRP is expected to contribute to effectively addressing 
all or a significant subset of challenges (Rating A) identified in the relevant country-
specific recommendations addressed to Romania, including fiscal aspects thereof and 
recommendations  made  pursuant  to  Article  6  of  Regulation  (EU)  No  1176/2011,  or 
the 
challenges 
Commission in the context of the European Semester. The recommendations related to 
the immediate fiscal policy response to the pandemic can be considered to fall outside 
the  scope  of  Romania’s  RRP,  notwithstanding  the  fact  that  Romania  has  generally 
responded adequately and sufficiently to the immediate need to support the economy 
through fiscal means in  2020 and 2021, in line with the general escape clause of the 
Stability  and  Growth  Pact.  The  recommendations  also  referred  to  the  need  for 
Romania  to  pursue  fiscal  policies  in  line  with  the  Council’s  recommendation  under 
Article 126(7) of the Treaty to  end the  excessive deficit situation. On 18 June 2021, 
the Council recommended to Romania to put an end to the excessive deficit situation 
by 2024 at the latest, with a deadline of 15 October 2021 for Romania to take effective 
action and to report on its consolidation strategy.  

(13)  The  plan  includes  an  extensive  set  of  mutually  reinforcing  reforms  and  investments 
that contribute to effectively addressing all or a significant subset of the economic and 
social  challenges  outlined  in  the  country-specific  recommendations  addressed  to 
Romania  by  the  Council  in  the  European  Semester  in  2019  and  in  2020.  Notably, 
reforms and investments included in the plan are expected to contribute in the areas of 
sustainability of public finances and pension system, healthcare, public administration, 
business environment, education, and green and digital transition. 

(14)  The full digitalisation of the tax administration and gradual phase out of excessive tax 
incentives,  as  well  as  an  improved  fiscal  framework,  will  contribute  to  the 
sustainability of public finances. The plan also aims at ensuring the sustainability and 
fairness  of  the  public  pension  system.  Healthcare  reforms,  accompanied  by 

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digitalisation  investments,  are  expected  to  improve  access,  cost-efficiency  and 
resilience of healthcare.  

(15)  Evidence-based  decision  making,  long-term  planning  and  public  consultations  and 
measures  aimed  at  improving  the  public  procurement  process,  reinforcing  the 
effectiveness  and  independence  of  the  judicial  system  and  fighting  corruption  will 
contribute  to  improving  the  quality  and  effectiveness  of  the  public  administration. 
Reforms  of  minimum  wage  setting,  strengthening  corporate  governance  of  state-
owned  enterprises  and  social  dialogue  also  address  long-standing  country-specific 
recommendations. The plan also aims to develop a unitary, inclusive and quality early-
childhood education and care system accompanied by investments in childcare.  

(16)  This decision is without prejudice to the Commission Decision 6569 of 13 December 
2006  establishing  a  mechanism  for  cooperation  and  verification  of  progress  in 
Romania to address specific benchmarks in the areas of judicial reform and the fight 
against  corruption.  The  benchmarks  in  the  Annex  to  that  Decision  are  intended  to 
ensure that Romania complies with the value of the rule of law, as set out in Article 2 
TEU, and are binding on it. Romania is required to take the appropriate measures for 
the purposes of addressing those benchmarks, taking due account, under the principle 
of sincere cooperation laid down in Article 4(3) TEU, of the reports drawn up by the 
Commission  on  the  basis  of  that  Decision,  and  in  particular  the  recommendations 
made in those reports. 

(17)  The  plan  promotes  sustainable  and  digital  investments  and  supports  research  and 
development  activities.  Reforms  related to  the coal  phase-out,  the  establishment  of a 
government  cloud  and  the  deployment  of  the  electronic  identity  card  contribute  to 
supporting the twin green and digital transition. 

(18)  By addressing the aforementioned challenges, the plan is expected to also contribute to 
correcting the imbalances, as identified in recommendations made pursuant to Article 
6  of  Regulation  (EU)  No  1176/2011  in  2020,  that  Romania  is  experiencing,  in 
particular with regard to risks of cost competitiveness losses, a deteriorating external 
position  and  a  widening  current  account  deficit,  in  a  context  of  expansionary  fiscal 
policy and an unpredictable business environment. 

(19) 

Contribution to growth potential, job creation and economic, social and institutional 
resilience 

In  accordance  with  Article  19(3),  point  (c),  of  and  Annex  V,  criterion  2.3,  to 
Regulation (EU) 2021/241, the RRP is expected to have a high impact (Rating A) on 
strengthening the growth potential, job creation, and economic, social and institutional 
resilience  of  Romania,  contributing  to  the  implementation  of  the  European  Pillar  of 
Social Rights, including through the promotion of policies for children and youth, and 
on  mitigating  the  economic  and  social  impact  of  the  COVID-19  crisis,  thereby 
enhancing  the  economic,  social  and  territorial  cohesion  and  convergence  within  the 
Union. 

(20)  Simulations by the Commission services show that the RRP, together with the rest of 
measures  of  the  European  Union  Recovery  Instrument,  has  the  potential  to  increase 
the GDP of Romania by 1,8 % to 2,9 % by 2026, not including the possible positive 
impact of structural reforms, which can be substantial.  

(21)  The implementation of social and educational reforms and investments are expected to 
tackle some of the long-standing vulnerabilities and structural deficiencies, stimulating 

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growth.  The  plan  includes  measures  to  strengthen  the  public  administration,  support 
private investments, particularly for SMEs, and strengthen the business environment, 
including through reducing the administrative burden for firms. 

(22)  The  plan’s  reforms  in  the  areas  of  education  and  the  labour  market  are  expected  to 
support a stronger labour market, favouring growth. The flagship reforms on the coal 
phase-out  and the decarbonisation of transport, and investments  promoting the  green 
and  digital  transition  are  expected  to  boost  competitiveness  and  make  the  economy 
overall more sustainable. 

(23)  A series of measures are expected to contribute to social cohesion and to the European 
Pillar of Social Rights. Those include the expansion of the availability of good quality 
early  childhood  education  and  care,  the  delivery  of  the  minimum  inclusion  income 
reform, health reforms and the introduction of voucher system, which has the potential 
to  increase  the  labour  market  participation  of  inactive  people  and  access  to  social 
services for newly employed workers. 

(24)  Social  resilience  is  expected  to  improve  as  a  result  of  the  educational  reforms  and 
investments  included  in  the  plan.  Having  a  well-skilled  labour  force  and  reducing 
early  school  leaving  should  make  the  economy  better  placed  to  withstand  future 
shocks and the population more adaptable to changing economic patterns. 

(25)  Poverty and income inequality deepened during the pandemic outbreak, and regional 
disparities  persist,  with  vulnerable  groups  being  more  affected.  The  plan  aims  to 
contribute to the implementation of the European Pillar of Social Rights, through the 
promotion of policies for children and youth. Reforms and investments are expected to 
respond  to  structural  problems  in  areas  where  the  pandemic  crisis  has  taken  its  toll, 
with  a  focus  on  health,  education,  and  the  business  environment.  In  addition, 
investments  in  basic transport infrastructure in  currently poorly connected regions  of 
the country and digital connectivity in rural areas will be key to bringing the country 
closer together.  

Do no significant harm 

(26) 

(27) 

In  accordance  with  Article  19(3),  point  (d),  of  and  Annex  V,  criterion  2.4,  to 
Regulation (EU) 2021/241, the RRP is expected to ensure that no measure (Rating A) 
for the implementation of reforms and investments projects included in the RRP does 
significant  harm  to  environmental  objectives  within  the  meaning  of  Article  17  of 
Regulation  (EU)  2020/852  of  the  European  Parliament  and  of  the  Council4  (the 
principle of 'do no significant harm').  

In accordance with the technical guidance provided in the Commission Notice entitled 
'Technical guidance on the application of "do no significant harm" under the Recovery 
and  Resilience  Facility  Regulation'5  Romania  has  provided  evidence  and  assurances 
that the measures for the implementation of reforms and investment projects included 
in the plan are expected not lead to significant harm to any of the six environmental 
objectives,  namely  climate change mitigation, climate change  adaptation, sustainable 
use  and  protection  of  water  and  marine  resources,  circular  economy,  pollution 

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Regulation  (EU)  2020/852  of  the  European  Parliament  and  of  the  Council  of  18  June  2020  on  the 
establishment  of  a  framework  to  facilitate  sustainable  investment,  and  amending  Regulation  (EU) 
2019/2088 (OJ L 198, 22.6.2020, p. 13). 
OJ C 58, 18.2.2021, p. 1. 

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prevention and control, and protection and restoration of biodiversity and ecosystems. 
Where  needed,  Romania  has  proposed  the  implementation  of mitigating  measures to 
avoid significant harm, which should be ensured through relevant milestones. 

(28)  Particular  attention  has  been  paid  to  measures  with  an  impact  on  environmental 
objectives 
investments  are 
that  warrants  close  scrutiny.  In  particular,  road 
accompanied  by  a  reform  on  the  decarbonisation  of  transport,  which  covers  green 
taxation  measures,  incentives  for  zero-emission  vehicles,  scrapping  of  polluting 
vehicles,  road  safety  measures  and  a  very  significant  increase  of  electric  charging 
stations. The plan also demonstrates that the construction of the distribution network 
enabling the transport of green hydrogen in the Oltenia region is future-proof, as it will 
carry 100 % renewable hydrogen and/or other renewable gases in 2030, starting with 
at  least  20 %  of  renewable  hydrogen  when  commissioned  by  30 June 2026.  These 
conditions  are  verified  by  intermediate  milestones  at  the  time  of  the  award  of  the 
contract.  Do  no  significant  harm  (DNSH)  compliance  of  investments  in  gas-fired 
Combined Heat and Power enabled for the use of renewables and low-carbon gases is 
ensured  through  the  adoption  and  implementation  of  a  National  Hydrogen  Strategy 
and Action Plan and the installation of renewable hydrogen production capacities, the 
closure of coal and lignite power and heat generation facilities, a significant amount of 
additional renewables capacity, and concrete reforms and investments to increase the 
share  of  renewables.  Waste  resulting  from  renovation  is  expected  be  treated  in 
accordance  with  circular  economy  principles.  Measures  in  waste  and  recycling 
treatment  should  not  contain  investments  in  incineration  or  mechanical  biological 
treatment in compliance with the do no significant harm principle. Measures aimed at 
the  replacement  of  the  fleet  of  vehicles  ensure  that  only  clean  vehicles  should  be 
eligible  for  funding.  Finally,  investments  in  water  management  are  not  expected  to 
lead to the deterioration of the ecological status of the affected water bodies, by taking 
into  account  the  findings  and  conditions  set  by  the  comprehensive  and  cumulative 
Environmental  Impact  Assessment  to  be  carried  out  for  the  purpose  of  these 
investments. 

Contribution to the green transition including biodiversity 

(29) 

In  accordance  with  Article  19(3),  point  (e),  of  and  Annex  V,  criterion  2.5,  to 
Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent 
(Rating  A)  to  the  green  transition,  including  biodiversity,  or  to  addressing  the 
challenges  resulting  therefrom.  The  measures  supporting  climate  objectives  account 
for  an  amount  which  represents  41 %  of  the  RRP's  total  allocation  calculated  in 
accordance  with  the  methodology  set  out  in  Annex  VI  of  that  Regulation.  In 
accordance  with  Article  17  of  that  Regulation,  the  recovery  and  resilience  plan  is 
consistent  with  the  information  included  in  the  National  Energy  and  Climate  Plan 
2021-2030.  

(30)  The  RRP  includes  long-lasting  reforms  and  investments  contributing  to  the  green 
transition.  The  plan  includes  a  reform  on  the  phase  out  of  coal  and  lignite  power 
production by 2032, which is crucial for the decarbonisation of the energy sector and 
to  unlock  the  potential  for  renewables  deployment.  Reforms  promoting  sustainable 
transport include the decarbonisation  of road transport,  green taxation, incentives for 
zero-emission vehicles,  modal shift  to  railways  and water transport,  and measures to 
promote road safety. The plan has also a strong focus on energy efficiency of private 
and  public  buildings.  The  introduction  of  green  budgetary  planning,  digitalisation  of 
road and rail transport and the deployment of electric charging infrastructures, climate 

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change  adaptation  and  circular  economy,  is  expected  to  also  facilitate  the  green 
transition in all sectors of the economy. 

(31)  With  several  reforms  and  investments  in  the  forestry  sector,  such  as  the  adoption  of 
the  National  Forest  Strategy  and  the  ecological  reconstruction  of  habitats  and  the 
conservation  of  species,  the  plan  is  also  expected  to  contribute  to  biodiversity 
conservation  and  restoration.  The  implementation  of  reforms  and  investments  on 
resource  efficiency,  material  reuse  and  reducing  waste  aim  to  ensure  Romania’s 
transition to a circular economy by 2030. 

Contribution to the digital transition 

(32) 

In  accordance  with  Article  19(3),  point  (f)  of  Annex  V,  criterion  2.6,  to  Regulation 
(EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) 
to the digital transition or to addressing the challenges resulting from it. The measures 
supporting  digital  objectives  account  for  an  amount  which  represents  20,5 %  of  the 
RRP’s  total  allocation  calculated  in  accordance  with  the  methodology  set  out  in  the 
Annex VII to Regulation (EU) 2021/241. 

(33)  The  plan  is  expected  to  address  digitalisation  challenges  related  to  the  public 
administration,  proposing  a  comprehensive  package  of  reforms  and  investments  in 
order to provide secure, interoperable, cost-efficient and fast user-centred services for 
citizens and businesses. The plan includes a new Information Systems Interoperability 
Law  which  is  expected  to  detail  the  uniform  set  of  standards  and  rules  that  public 
entities  are  supposed  to  apply  for  the  development  of  applications  in  a  secure  and 
sustainable environment, a Government Cloud Act setting out the responsibilities and 
tasks  regarding  the  design,  implementation,  development  and  management  of  the 
cloud infrastructure, technologies and services, a cybersecurity strategy and a reform 
implementing the recommendations of the Common Union Toolbox for Connectivity 
as well as the 5G security law, laying the ground for the 5G deployment. Reforms are 
underpinned  by  a  broad  range  of  key  investments,  such  as  the  development  of  the 
governmental cloud,  the digitalisation of health,  judiciary,  environment,  employment 
and  social  protection,  public  procurement,  non-governmental  organisations, 
connectivity  for  white  areas,  ensuring  cybersecurity  for  different  structures  and 
increasing  digital  skills  both  for  civil  servants  and  the  population  at  large.  The 
deployment  of  the  electronic  identity  card  is  expected  to  facilitate  the  digital 
interaction between public/private entities  and  citizens.  Moreover, with  the inclusion 
of  the  definition  of  new  digital  occupations  in  the  Classifications  of  Occupations 
Code, the labour market is expected to align to the latest developments in the digital 
sector. 

(34)  The  plan  also  supports  the  digitalisation  of  road  and  rail  transport  and  facilitates 
taxpayers’ compliance through the development  of digital services, updating systems 
and applications of the tax and customs authorities. The business sector is expected to 
benefit  from  significant  investments  aiming  to  accelerate  the  digitalisation  of  both 
SMEs and large companies with a focus on the development and adoption of advanced 
technologies  (such  as  blockchain,  quantum,  cloud  computing,  artificial  intelligence). 
An  underpinning  reform  is  expected  to  streamline,  simplify  and  fully  digitalise 
business related regulatory requirements (such as setting up a company, exit from the 
market/closure  of  a  business  as  well  as  for  regulatory  requirements  for  reporting  of 
labour  market  obligations  for  companies).  As  regards  education,  reforms  include 
standards for ensuring the quality of online educational activities and the alignment of 

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the educational system to the DigComp European framework for digital competences 
for  students.  The  corresponding  investments  tackle  the  development  of  thematic 
training courses, for digital literacy and digital pedagogy competences in particular for 
teachers  in  rural  areas  and  other  disadvantaged  environment,  grants  for  informatics 
laboratories and smart hubs, development of open educational resources and schemes 
for digitalisation of universities. 

(35)  All  the  plan’s  components  include  measures  with  direct  contribution  to  the  digital 
transformation  or  addressing  related  challenges.  The  key  components  are  the  digital 
transformation, followed by education, sustainable transport and business support and 
R&D&I.  The  measures  contributing  to  the  digital  transformation  are  expected  to 
improve  the  effectiveness  of  the  public  administration,  lowering  the  administrative 
burdens,  increasing  the  competitiveness  of  the  businesses  and  equip  parts  of  the 
population  (notably  students,  teachers  and  civil  servants  with  basic  and  advanced 
digital  skills),  enabling  a  synergetic  effect  for  the  economy  as  a  whole.  The  digital 
dimension is  strengthened with  a  cross-border dimension,  as Romania is expected to 
participate  in  a  multi-country  project  on  low  power  processors  and  semiconductor 
chips planned as an Important Project of Common European Interest. 

Lasting impact 

(36) 

In  accordance  with  Article  19(3),  point  (g),  of  and  Annex  V,  criterion  2.7,  to 
Regulation (EU) 2021/241, the RRP is expected to have a lasting impact on Romania 
to a large extent (Rating A). 

(37)  The reforms proposed in the plan are expected to contribute to Romania’s capacity to 
deliver long-term results and structural change. The reform on recruitment, wages and 
career  progression  in  the  public  sector  is  expected  to  attract  skilled  and  professional 
human  resources.  An  independent  review  and  the  adoption  of  the  recommendations 
that follow should make the tax system fairer and more efficient. The pension system 
reform should make the system fairer and more sustainable. The reform of the energy 
sector  should  contribute  to  decarbonisation  of  energy  production.  A  broader  use  of 
green  taxation  is  expected  to  incentivise  citizens  and  companies  to  adopt  a  more 
environmentally  sustainable  behaviour,  while  making  the  taxation  system  fairer 
towards non-pollutants. The establishment of metropolitan areas and rural consortia is 
expected  to  broaden  the  policy  tools  that  neighbouring  municipalities  have  at  their 
disposal  to  face  cross-border  issues  –  such  as  traffic  congestion,  air  pollution,  water 
management  and  housing  policy.  Similarly,  legal  provisions  will  encourage  the 
voluntary merging of research institutions, thus enhancing the research and innovation 
capacity of the country. 

(38)  The plan contains investments expected to have a lasting impact, supporting the green 
and  digital  transition  of  the  economy.  The  digital-related  measures  in  the  plan  are 
designed  to  increase  the  level  of  digitalisation  of  relevant  institutions,  which  is 
expected to have a lasting impact on the quality of services, the business environment 
and  the  optimal  use  of  government  data.  This  concerns  essential  areas  such  as  the 
judicial  system,  social  security,  the  health  system,  the  cybersecurity  framework  or 
platforms  to  improve  interactions  between  public  administrations  and  citizens  or 
businesses.  The  plan  further  contributes  to  the  good  functioning  of  the  public 
administration in Romania. Positive labour market outcomes are expected to occur as 
a  result  of  complementarities  between  the  introduction  of  the  voucher  scheme  for 
domestic  workers,  the  improvement  of  the  digital  services  provided  by  the 

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employment services, and the deployment of programs for the development of digital 
skills.  Public healthcare  quality  and access  to  healthcare is  expected to  increase  as a 
result  of  the  implementation  of  a  performance-based  disbursement  system  for 
healthcare  providers,  improved  health  workforce  management  and  investments  in 
healthcare  infrastructure.  With  the  establishment  of  the  task-force  to  implement  and 
monitor digital transformation reforms and investments, civil servants should develop 
specific  digital  skills,  thus  enabling  continuous  improvements  in  the  delivery  of 
quality public services. 

(39)  The  lasting  impact  of  the  plan  can  also  be  enhanced  through  synergies  between  the 
plan  and  other  programmes,  including  those  financed  by  cohesion  policy  funds,  in 
particular  by  addressing  in  a  substantive  manner  the  deeply  rooted  territorial 
challenges and promoting a balanced development. 

Monitoring and implementation 

(40) 

In  accordance  with  Article  19(3),  point  (h),  of  and  Annex  V,  criterion  2.8,  to 
Regulation  (EU)  2021/241,  the  arrangements  proposed  in  the  RRP  are  adequate 
(Rating A) to ensure effective monitoring and implementation of the RRP, including 
the envisaged timetable, milestones and targets, and the related indicators.  

(41)  A multi-level  governance is  envisaged for the implementation and monitoring of the 
RRP. At central level, the coordination is ensured by the Inter-ministerial Committee 
for  the  Coordination  of  the  recovery  and  resilience  plan,  responsible  for  examining 
progress in the implementation of the plan, in close cooperation with the Ministry of 
Investment  and  European  Projects  (MIPE).  MIPE  is  appointed  as  the  national 
coordinator  for the preparation, negotiation  and  approval  of the plan, assisted by the 
Ministry  of  Public  Finances  (for  tasks  related  to  signing  the  loan  agreement  and  the 
financing  agreement).  A  specialised  structured  within  the  MIPE  shall  be  established 
for this task. The implementation of the RRP shall be ensured by line ministries and 
their  subordinated  structures,  through  the  conclusion  of  financing  agreements  with 
MIPE.  The  contracts  shall  comprise  provisions  related  to  the  monitoring  of  the 
investments and reforms, financial planning execution as well as reporting obligations. 
The  plan  also  envisages  that  an  independent  audit  body  will  be  responsible  for  the 
implementation of audit and control. This body is the same audit authority as the one 
used  for  the  European  Structural  and  Investment  Funds  and  is  independent  from  the 
coordination body and institutions  responsible for the implementation  of the reforms 
and investments. The strengthening of  administrative capacity, including through the 
recruitment  of  additional human resources shall  be enshrined in  a legal  act,  with  the 
aim  to  ensure  a  timely  and  effective  implementation  of  the  plan’s  measures.  The 
governance  model  provides  for  the  assignment  of  clear  responsibilities  for  the 
implementation of the plan, the monitoring of progress and reporting. The milestones 
and  targets  of  the  Romanian  plan  are  clear  and  realistic,  and  adequately  reflect  the 
investments and reforms envisaged in the plan. The indicators are relevant, acceptable 
and sufficiently robust. Milestones and targets are also relevant for measures already 
completed which are eligible under Article 17 (2) of Regulation (EU) 2021/241. The 
satisfactory fulfilment of these milestones and targets over time is required to justify a 
disbursement request. 

(42)  Member  States  should  ensure 

is 
communicated  and  acknowledged  in  line  with  Article  34  of  Regulation  (EU) 
2021/241.  Technical  support  may  be  requested  under  the  Technical  Support 

that  financial  support  under 

the  Facility 

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Instrument established by Regulation (EU) 2021/240 of the European Parliament and 
of the Council6 to assist Member States in the implementation of their RRPs. 

Costing 

(43) 

In accordance with Article 19(3), point (i) and Annex V, criterion 2.9, to Regulation 
(EU) 2021/241, the justification provided in the RRP on the amount of the estimated 
total costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in 
line with the principle of cost efficiency and is commensurate to the expected national 
economic and social impact. 

(44)  The information and evidence on estimated total costs presented is, for the most part, 
detailed  and  clear  for  a  majority  of  measures.  In  most  cases,  Romania  provided 
information either on actual or similar past investment projects, or on comparative cost 
data for the main costs drivers that allow substantiating most cost estimates. For most 
measures, the information on estimated total costs includes clear supporting evidence 
or relevant references justifying the reference unit costs applied. For certain measures, 
further information presenting more detailed estimations and justifications could have 
increased  the  level  of  assurance  that  costs  are  reasonable  and  plausible.  Since,  for 
those cost estimates, the methodology used is not sufficiently well explained  and the 
link between the justification and the cost itself is at times not fully clear the rating for 
the costing assessment criterion is medium. Romania provided sufficient information 
and evidence that the amount of the estimated total costs of the recovery and resilience 
plan  to  be  financed  under  the  Facility  is  not  covered  by  existing  or  planned  Union 
financing. Finally, the estimated total costs of the RRP is in line with the principle of 
cost-efficiency  and  is  commensurate  to  the  expected  national  economic  and  social 
impact. 

Protection of the financial interests of the Union 

(45) 

In accordance with Article 19(3), point (j), of Annex V, criterion 2.10, to Regulation 
(EU)  2021/241,  the  arrangements  proposed  in  the  RRP  are  adequate  (Rating  A)  to 
prevent, detect and correct corruption, fraud and conflicts of interests when using the 
funds provided under that Regulation, and the arrangements are expected to effectively 
avoid  double  funding  under  that  Regulation  and  other  Union  programmes.  This  is 
without  prejudice  to  the  application  of  other  instruments  and  tools  to  promote  and 
enforce compliance with Union law, including for preventing, detecting and correcting 
corruption, fraud and conflicts of interest, and for protecting the Union budget in line 
with  Regulation  (EU,  Euratom)  2020/2092  of  the  European  Parliament  and  of  the 
Council7.   

(46)  The  internal  control  system  described  in  the  RRP  is  based  on  robust  processes  and 
structures  and  clearly  identifies  actors  and  their  roles  and  responsibilities  for  the 
performance  of  the  internal  control  tasks.  The  internal  control  system  and  other 
relevant  arrangements,  including  the  collection  and  publication  of  data  on  final 
recipients  are  expected  to  prevent,  detect  and  correct  corruption,  fraud,  conflicts  of 
interest  when  using  the  funds  under  Regulation  (EU)  2021/241  and  to  avoid  double 

6 

7 

Regulation  (EU)  2021/240  of  the  European  Parliament  and  of  the  Council  of  10 February 2021 
establishing a Technical Support Instrument (OJ L 57, 18.2.2021, p. 1). 
Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 
2020  on  a  general  regime  of  conditionality  for  the  protection  of  the  Union  budget  (OJ  L  433  I, 
22.12.2020, p. 1). 

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funding under that Regulation and other Union programmes. A repository system for 
monitoring of the implementation of the Facility is to be put in place and operational 
by  the  time  of  the  first  payment  request.  A  milestone  should  ensure  that  the  system 
includes,  as  a  minimum,  the  following  functionalities:  (a)  collection  of  data  and 
monitoring  of  the  achievement  of  milestones  and  targets;  and  (b)  collection,  storing 
and  ensuring  access  to  the  data  required  by  Article  22(2)  point  (d)(i)  to  (iii)  of  the 
Regulation.  

(47)  Specific measures are to be implemented to check compliance with the rules relating 
to  public  procurement,  to  prevent  corruption  and  to  protect  financial  interests.  The 
Audit  Authority  from  the  Court  of  Auditors  based  its  audit  approach  on  a  system 
strategy  covering  both  the  system  in  place  for  the  reporting  of  the  milestones  and 
targets,  as  well  as  the  internal  control  system  for  the  prevention,  detection  and 
correction  of  fraud,  conflict  of  interest,  corruption  and  double  financing.  The  plan 
provides information on the administrative capacity of the bodies which will monitor, 
control and implement the plan in Romania, as well as those bodies that shall perform 
audit activities.  It  also  gives information  on the legal  mandate of the various bodies. 
The approval of a complete legal mandate for the coordination body and the Ministry 
of Public Finance, including the exact activities to be performed by the audit body, is 
expected to occur only after the approval of the plan. Therefore, the entry into force of 
the Government  Emergency Ordinance on the financial, implementation,  control and 
audit mechanism is introduced as a milestone to be fulfilled before the submission of 
the first payment request.  

Coherence of the RRP 

(48) 

In  accordance  with  Article  19(3),  point  (k),  of  and  Annex  V,  criterion  2.11,  to 
Regulation (EU) 2021/241, the RRP includes to a high extent (Rating A) measures for 
the implementation of reforms and public investment projects that represent coherent 
actions.  

(49)  The  plan  is  structured  around  six  coherent  pillars  supporting  the  stimulation  of  the 
recovery of the Romanian economy, the contribution to its green and digital transition 
and the increase in its resilience on the path towards a more sustainable and inclusive 
growth.  Each  pillar  is  built  around  components  including  consistent  packages  of 
mutually reinforcing and complementary  reforms and investments.  All  pillars pursue 
complementary and coherent objectives. The plan does not present inconsistencies or 
contradictions  between  pillars  or  components.  The  large  investments  in  road 
infrastructures  are  accompanied  by  flanking  measures  to  decarbonise  road  transport 
and are therefore coherent with the objectives of the Green transition pillar. Similarly, 
investments  in  gas  infrastructures  and  power  production  accompany  the  transition 
towards a decarbonised energy sector, in the context of the reform on the coal phase-
out.  The  need  for  establishing  systematic  complementarities  with  cohesion  policy 
funding is evident and examples are presented in the components. Demarcation lines 
are sufficiently developed and should also be taken into account for the finalisation of 
the partnership agreement and cohesion policy programmes. 

Equality 

(50)  The  RRP  contains  a  series  of  measures  expected  to  contribute  to  addressing  the 
country’s  challenges  in  the  area  of  gender  equality  and  equal  opportunities  for  all. 
These include measures addressing the needs of people with disabilities, including in 
relation  to  accessibility to  transport, buildings and digital  public  services. On gender 

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(51) 

equality, the plan includes measures aimed at equalising the retirement age over time, 
as  well  as  minimum  threshold  for  women’s  participation  in  training  programmes  of 
50%  for  digital  skills  development  programmes.  The  plan  also  contains  targets  to 
stimulate  the  participation  of  vulnerable  people  (including  persons  with  disabilities, 
older persons as well as Roma or other minorities) in the labour market.  

Security self-assessment 

In  accordance  with  Article  18(4),  point  (g)  to  Regulation  (EU)  2021/241,  the  plan 
includes  a  security-self  assessment  for  investments  related  to  government  cloud  and 
5G  networks.  For  the  government  cloud,  Romania  lists  risks  related  to  governance, 
service  delivery  strategy,  architecture  implementation,  infrastructure  security,  access 
control  and  identity  management,  information  and  data  management,  IT  operations, 
management of technology providers, and sustainability, including possible measures 
to mitigate the risks. As regards connectivity measures, in particular for the use of 5G 
networks, risk scenarios are related to insufficient security measures, 5G supply chain, 
risk  scenarios  related  to  modus  operandi  of  key  threat  actors,  risks  in  relation  to 
interdependencies  between  5G  networks  and  other  critical  systems,  end-user  risk 
scenarios  of  devices.  Mitigation  measures  include  the  development  of  a  national 
cybersecurity  regulatory  framework  and  a  defence  and  cybersecurity  act,  among 
others. The plan also includes reforms implementing the Common Union Toolbox for 
Connectivity and the entry into force of the 5G security law. 

Cross-border and multi-country projects 

(52)  The  RRP  includes  investments  along  the  Trans-European  Transport  (TEN-T) 
corridors.  In  addition,  the  development  of  at  least  315  km  of  the  European  Rail 
Transport Management  System is  expected to  allow the interoperability  with  the rail 
systems of other Member States. The plan also envisages to support the participation 
of Romanian undertakings in the multi-country project on Low Power Processors and 
Semiconductor  Chips  expected  to  be  implemented  mainly  through  participation  or 
association to a planned Important Project of Common European Interest. 

Consultation process 

(53)  The  RRP  describes  that  Romania  has  consulted  a  wide  range  of  stakeholders, 
including  regional  and  local  authorities,  civil  society  organisations,  business 
community and other relevant stakeholders. The Romanian government organised 12 
public  consultation  events  during  February  2021,  as  well  as  20  inter-ministerial 
meetings in order to prioritise the investments and reforms to be included in the RRP. 
Following  the  stakeholder  and  inter-ministerial  consultation  meetings,  the  draft  plan 
was  published  for  public  consultation  and  briefly  presented  to  the  Parliament  before 
being adopted by the Government and subsequently submitted to the Commission. 

(54)  To  ensure  ownership  by  the  relevant  actors,  it  is  crucial  to  involve  all  regional  and 
local authorities and stakeholders concerned, including social partners, throughout the 
implementation of the investments and reforms included in the plan. 

Positive assessment 

(55)  Following the positive assessment of the Commission concerning the Romanian RRP 
with the finding that the RRP satisfactorily complies with the criteria for assessment 
set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V 
to  that  Regulation,  this  Decision  should  set  out  the  reforms  and  investment  projects 
necessary  for  the  implementation  of  the  RRP,  the  relevant  milestones,  targets  and 

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indicators, and the amount made available from the Union for the implementation of 
the RRP in the form of non-repayable financial and loan support. 

Financial contribution 

(56)  The estimated total cost of the RRP of Romania is EUR 29 181 842 750. As the RRP 
satisfactorily  complies  with  the  criteria  for  assessment  set  out  in  Regulation  (EU) 
2021/241  and,  furthermore,  as  the  amount  of  the  estimated  total  costs  of  the  plan  is 
lower  than  the  maximum  financial  contribution  available  for  Romania,  the  financial 
contribution  allocated  for  Romania's  recovery  and  resilience  plan  should  be  equal  to 
the amount of the estimated total costs of the plan for Romania. 

(57) 

In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the 
maximum  financial  contribution  for  Romania  is  to  be  updated  by  30  June  2022.  As 
such, in accordance with Article 23(1) of that Regulation, an amount for Romania not 
exceeding the maximum financial contribution  referred to  in  Article 11(1), point (a), 
of  that  Regulation  should  be  made  available  now  for  a  legal  commitment  by  31 
December  2022.  Where  necessary  following  the  update  of  the  maximum  financial 
contribution,  the  Council,  on  a  proposal  from  the  Commission,  should  amend  this 
Decision  to  include  the  updated  maximum  financial  contribution,  calculated  in 
accordance with Article 11(2) of that Regulation, without undue delay. 

(58)  Furthermore,  in  order  to  support  additional  reforms  and  investments,  Romania  has 
requested  loan  support.  The  maximum  volume  of  the  loan  requested  by  Romania  is 
less than 6,8 % of its 2019 gross national income in current prices. The amount of the 
estimated  total  costs  of  the  plan  is  less  than  the  combined  financial  contribution 
available for Romania and the requested loan support. 

(59)  The support to be provided is to be financed from the borrowing by the Commission 
on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 
2020/20538. The support should be paid in instalments once Romania has satisfactorily 
fulfilled the relevant milestones and targets identified in relation to the implementation 
of the RRP. 

(60)  Romania  has  requested  pre-financing  of  13 %  of  the  financial  contribution  and  of 
13 %  of  the  loan.  That  amount  should  be  made  available  to  Romania  subject  to  the 
entry into force of, and in accordance with, the agreement provided for in Article 23(1) 
of  Regulation  (EU)  2021/241  (the  'financing  agreement')  and  the  loan  agreement 
provided for in Article 15(2) of that Regulation (the ‘loan agreement’). 

(61)  This Decision should be without prejudice to the outcome of any procedures relating 
to the award of Union funds under any Union programme other than the Facility or to 
procedures  relating to  distortions  of the operation of the internal  market  that may be 
undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override 
the  requirement  for  Member  States  to  notify  instances  of  potential  State  aid  to  the 
Commission under Article 108 of the Treaty,        

8 

OJ L 424, 15.12.2020, p. 1. 

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HAS ADOPTED THIS DECISION:  

Article 1 
Approval of the assessment of the RRP  

The  assessment  of  the  RRP  of  Romania  on  the  basis  of  the  criteria  provided  for  in  Article 
19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under 
the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, 
including the relevant milestones and targets and the additional milestones and targets related 
to the payment of the loan, the relevant indicators relating to the fulfilment of the envisaged 
milestones and targets, and the arrangements for providing full access by the Commission to 
the underlying relevant data are set out in the Annex to this Decision. 

Article 2 
Financial contribution 

1. 

2. 

3. 

4. 

9 

The Union shall make available to  Romania a financial contribution  in  the form  of 
non-repayable  support  amounting 
to  EUR 14 239 689 750.  An  amount  of 
EUR 10 211 538 399  shall  be  available  to  be  legally  committed  by  31  December 
2022.9  Subject  to  the  update  provided  for  in  Article  11(2)  of  Regulation  (EU) 
2021/241 results in an updated maximum financial contribution for Romania that is 
equal to or more than EUR 14 239 689 750, a further amount of EUR 4 028 151 351 
shall be available to be legally  committed from 1 January  2023 until  31  December 
2023. If the update provided for in Article 11(2) of Regulation 2021/241 results in an 
updated  maximum 
than 
EUR 14 239 689 750,  the  difference  between  the  updated  maximum  financial 
contribution and the amount of EUR 10 211 538 399 shall be available to be legally 
committed  in  accordance  with  the  procedure  set  out  in  Article  20(8)  of  Regulation 
(EU)2021/241 from 1 January 2023 until 31 December 2023. 

financial  contribution 

for  Romania 

less 

that 

is 

The  Union  financial  contribution  shall  be  made  available  by  the  Commission  to 
Romania in instalments in accordance with the Annex to this Decision. An amount of 
EUR 1 851 159 668  shall  be  made  available  as  a  pre-financing  payment,  equal  to 
13 %  of  the  financial  contribution.  The  pre-financing  and  instalments  may  be 
disbursed  by  the  Commission  in  one  or  several  tranches.  The  size  of  the  tranches 
shall be subject to the availability of funding. 

The  pre-financing  shall  be  released  subject  to  the  entry  into  force  of,  and  in 
accordance  with  the  financing  agreement.  Pre-financing  shall  be  cleared  by  being 
proportionally deducted against the payment of the instalments. 

The  release  of  instalments  in  accordance  with  the  financing  agreement  shall  be 
conditional  on  available  funding  and  a  decision  by  the  Commission,  taken  in 
accordance  with  Article  24  of  Regulation  (EU)  2021/241,  that  Romania  has 
satisfactorily fulfilled the relevant milestones and targets identified in relation to the 
implementation  of  the  RRP.  In  order  to  be  eligible  for  payment,  Romania  shall 

This amount corresponds to the financial allocation after deduction of the Romania’s proportional share 
of  the  expenses  of  Article  6(2)  of  Regulation  (EU)  2021/241,  calculated  in  accordance  with  the 
methodology of Article 11 of that Regulation. 

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complete  the  milestones  and  targets  no  later  than  31  August  2026,  subject  to  the 
entry into force of the legal commitments referred to in paragraph 1. 

Article 3 
Loan support 

1. 

2. 

3. 

4. 

The  Union  shall  make  available  to  Romania  a  loan  amounting  to  a  maximum  of 
EUR 14 942 153 000.  

The  loan  support  shall  be  made  available  by  the  Commission  to  Romania  in 
instalments  in  accordance  with  the  Annex  to  this  Decision.  An  amount  of 
EUR 1 942 479 890  shall  be  made  available  as  a  pre-financing  payment,  equal  to 
13 %  of  the  loan.  The  pre-financing  and  instalments  may  be  disbursed  by  the 
Commission in one or several tranches. The size of the tranches shall be subject to 
the availability of funding.  

The pre-financing shall be released subject to the entry into force and in accordance 
with  the  loan  agreement.  Pre-financing  shall  be  cleared  by  being  proportionally 
deducted against the payment of the instalments. 

The  release  of  instalments  in  accordance  with  the  Loan  Agreement  shall  be 
conditional  on  available  funding  and  a  decision  by  the  Commission,  taken  in 
accordance  with  Article  24  of  Regulation  (EU)  2021/241,  that  Romania  has 
satisfactorily fulfilled the additional milestones and targets covered by the loan and 
identified  in  relation  to  the  implementation  of  the  RRP.  In  order  to  be  eligible  for 
payment, Romania shall complete the additional milestones and targets no later than 
31 August 2026. 

This Decision is addressed to Romania. 

Done at Brussels, 

Article 4 
Addressee 

For the Council 
The President 

EN 

16 

  EN