Recommendation for a COUNCIL RECOMMENDATION on the 2022 National Reform Programme of Romania and delivering a Council opinion on the 2022 Convergence Programme of Romania
Date: 2022-05-23
Institutions: European Commission, Secretariat-General
Subjects: Romania, economic policy, economic recovery, economic reform, energy policy, fiscal policy, improvement of housing, renewable energy, stability pact, stability programme

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.5.2022  COM(2022) 624 final  Recommendation for a COUNCIL RECOMMENDATION on the 2022 National Reform Programme of Romania and delivering a Council opinion on the 2022 Convergence Programme of Romania {SWD(2022) 624 final} - {SWD(2022) 640 final}  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2022 National Reform Programme of Romania and delivering a Council opinion 
on the 2022 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 
policies1, and in particular Article 9(2) thereof, 

Having  regard  to  Regulation  (EU)  No  1176/2011  of  the  European  Parliament  and  of  the 
Council  of  16  November  2011  on  the  prevention  and  correction  of  macroeconomic 
imbalances2, and in particular Article 6(1) thereof, 

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

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) 

Regulation  (EU)  2021/241  of  the  European  Parliament  and  of  the  Council3,  which 
established  the  Recovery  and  Resilience  Facility,  entered  into  force  on  19  February 
2021.  The  Recovery  and  Resilience  Facility  provides  financial  support  for  the 
implementation of reforms and investment, entailing a fiscal impulse financed by the 
Union.  It  contributes  to  the  economic  recovery  and  to  the  implementation  of 
sustainable and growth-enhancing reforms and investment, in particular to promote the 
green and digital transitions, while strengthening the resilience and potential growth of 
the Member States’ economies. It also helps strengthen sustainable public finances and 
boost growth and job creation in the medium and long term. The maximum financial 
contribution  per  Member  State  under  the  Recovery  and  Resilience  Facility  [was] 
updated on [XX] June 2022, in line with Article 11(2) of Regulation (EU) 2021/241.  

(2) 

On  24  November  2021,  the  Commission  adopted  the  Annual  Sustainable  Growth 
Survey,  marking  the  start  of  the  2022  European  Semester  for  economic  policy 

1 
2 
3 

OJ L 209, 2.8.1997, p. 1. 
OJ L 306, 23.11.2011, p. 25. 
Regulation  (EU)  2021/241  of  the  European  Parliament  and  of  the  Council  of  12  February  2021 
establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17). 

EN 

1 

  EN 

                                                 
coordination.  It  took  due  account  of  the  reaffirmed  joint  commitment  of  the  Porto 
Social Summit of May 2021 to further implement the European Pillar of Social Rights, 
proclaimed  by  the  European  Parliament,  the  Council  and  the  Commission  on  17 
November  2017.  The  European  Council  endorsed  the  priorities  of  the  2022  Annual 
Sustainable Growth Survey on 25 March 2022. On 24 November 2021, on the basis of 
Regulation  (EU)  No  1176/2011,  the  Commission  also  adopted  the  Alert  Mechanism 
Report, in which it identified Romania as one of the Member States for which an in-
depth review4 would be needed. On the same date, the Commission also adopted the 
proposal  for the 2022 Joint  Employment Report analysing the implementation  of the 
Employment  Guidelines  and  the  principles  of  the  European  Pillar  of  Social  Rights, 
which was adopted by the Council on 14 March 2022. 

Russia’s  invasion  of  Ukraine,  in  the  wake  of  the  global  pandemic,  has  significantly 
altered the geopolitical and economic context. The impact of the invasion on Member 
States’ economies has been felt for example through higher energy and food prices and 
weaker  growth  prospects.  The  higher  energy  prices  weigh  particularly  on  the  most 
vulnerable  households,  experiencing  or  at  risk  of  energy  poverty.  The  EU  is  also 
seeing  an  unprecedented  inflow  of  people  fleeing  Ukraine.  In  this  context,  on 
4 March 2022,  the  Temporary  Protection  Directive  was  triggered5  for  the  first  time, 
granting displaced persons from Ukraine the right to legally stay in the EU, as well as 
access  to  education  and  training,  the  labour  market,  healthcare,  housing  and  social 
welfare.  Exceptional  support  is  made  available  to  Romania  under  the  Cohesion’s 
Action for Refugees in Europe (CARE) initiative and through additional pre-financing 
under the Recovery Assistance for Cohesion and the Territories of Europe (REACT-
EU) programme to urgently address reception and integration needs for  those fleeing 
Ukraine.  

Taking  account  of  the  rapidly  changing  economic  and  geopolitical  situation,  the 
European Semester resumes its broad economic and employment policy coordination 
in 2022, while evolving in line with the implementation requirements of the Recovery 
and  Resilience  Facility,  as  outlined  in  the  2022  Annual  Sustainable  Growth  Survey. 
The  implementation  of  the  adopted  recovery  and  resilience  plans  is  essential  for  the 
delivery of the policy priorities under the European Semester, as the plans address all 
or a significant subset of the relevant country-specific recommendations issued in the 
2019  and  2020  Semester  cycles.  The  2019  and  2020  country-specific 
recommendations  remain  equally  relevant  also  for  recovery  and  resilience  plans 
revised, updated, or amended in accordance with Articles 14, 18 and 21 of Regulation 
(EU) 2021/241, in addition to any country-specific recommendations issued up to the 
date of submission of the modified plan.  
The General Escape Clause has been active since March 20206. In its Communication 
of  3  March  20217,  the  Commission  set  out  its  view  that  the  decision  on  the 

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. 
Council Implementing Decision (EU) 2022/382 of 4 March 2022  establishing the existence of a mass 
influx of displaced persons from Ukraine within the meaning of Article 5 of Directive 2001/55/EC, and 
having the effect of introducing temporary protection, OJ L 71, 4.3.2022, p. 1.  
Communication from the Commission to the Council on the activation of the general escape clause of 
the Stability and Growth Pact, Brussels, 20.3.2020, COM(2020) 123 final. 

Communication  from  the  Commission  to  the  Council  on  one  year  since  the  outbreak  of  COVID-19: 
fiscal policy response, Brussels, 3.3.2021, COM(2021) 105 final. 

(3) 

(4) 

(5) 

4 

5 

6 

7 

EN 

2 

  EN 

                                                 
(6) 

deactivation or continued application of the general escape clause should be taken as 
an overall assessment of the state of the economy, with the level of economic activity 
in the EU or euro area compared to pre-crisis levels (end-2019) as a key quantitative 
criterion. Heightened uncertainty and strong downside risks to  the economic outlook 
in  the  context  of  war  in  Europe,  unprecedented  energy  price  hikes  and  continued 
supply  chain  disturbances  warrant  the  extension  of  the  general  escape  clause  of  the 
Stability and Growth Pact through 2023. 

On  2  March  2022,  the  Commission  adopted  a  Communication  providing  broad 
guidance  for  fiscal  policy  in  2023,  aiming  at  supporting  the  preparation  of  Member 
States’  Stability  and  Convergence  Programmes  and  thereby  strengthening  policy 
coordination8.  The  Commission  noted  that,  based  on  the  macroeconomic  outlook  of 
the  2022  winter  forecast,  transitioning  from  an  aggregate  supportive  fiscal  stance  in 
2020-2022  to  a  broadly  neutral  aggregate  fiscal  stance  would  appear  appropriate  in 
2023,  while  standing  ready  to  react  to  the  evolving  economic  situation.  The 
Commission announced that the fiscal recommendations for 2023  should continue to 
differentiate  across  Member  States  and  take  into  account  possible  cross-country 
spillovers. The Commission invited the Member States to reflect the guidance in their 
Stability  and  Convergence  Programmes.  The  Commission  committed  to  closely 
monitor  the  economic  developments  and  adjust  its  policy  guidance  as  needed  and  at 
the latest in its Semester spring package of late May 2022. 

(7)  With  respect  to  the  fiscal  guidance  provided  on  2  March  2022,  the  fiscal 
recommendations  for  2023  take  into  account  the  worsened  economic  outlook,  the 
heightened uncertainty and further downside risks, and the higher inflation compared 
to the winter forecast. Against these considerations, the fiscal response has to expand 
public investment for the green and digital transition and energy security, and sustain 
the purchasing power of the most vulnerable households so as to cushion the impact of 
the energy price hike and help limit inflationary pressures from second round effects 
via targeted and temporary measures; fiscal policy has to remain agile so as to adjust 
to the rapidly evolving circumstances, and be differentiated across countries depending 
on their fiscal and economic situation, including as regards the exposure to the crisis 
and the inflow of displaced persons from Ukraine. 

(8) 

On 31 May 2021, Romania submitted its national recovery and resilience plan to the 
Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. Pursuant 
to  Article  19  of  Regulation  (EU)  2021/241,  the  Commission  assessed  the  relevance, 
effectiveness,  efficiency  and  coherence  of  the  recovery  and  resilience  plan,  in 
accordance  with  the  assessment  guidelines  of  Annex  V  to  that  Regulation.  On  3 
November 2021, the Council adopted its Decision on the approval of the assessment of 
the  recovery  and  resilience  plan  for  Romania9.  The  release  of  instalments  is 
conditional on a decision by the Commission, taken in accordance with Article 24(5) 
of  Regulation  (EU)  2021/241,  that  Romania  has  satisfactorily  fulfilled  the  relevant 
milestones  and  targets  set  out  in  the  Council  Implementing  Decision.  Satisfactory 
fulfilment  presupposes  that  the  achievement  of  preceding  milestones  and  targets  has 
not been reversed. 

8 

9 

Communication  from  the  Commission  to  the  Council:  Fiscal  policy  guidance  for  2023,  Brussels, 
2.3.2022, COM(2022) 85 final. 
Council Implementing Decision of 3 November 2021 on the approval of the assessment of the recovery 
and resilience plan for Romania (ST 12319/21; ST12319/21 ADDI)  

EN 

3 

  EN 

                                                 
(9) 

On 12 May 2022, Romania submitted its 2022 National Reform Programme and, on 4 
May  2022,  its  2022  Convergence  Programme,  beyond  the  deadline  established  in 
Article 4 of Regulation  (EC) No 1466/97. To take account of their interlinkages, the 
two  programmes  have  been  assessed  together.  In  accordance  with  Article  27  of 
Regulation  (EU)  2021/241,  the  2022  National  Reform  Programme  also  reflects 
Romania’s  bi-annual  reporting  on  the  progress  made  in  achieving  its  recovery  and 
resilience plan.  

the 

(10)  The Commission published the 2022 country report for Romania10 on 23 May 2022. It 
relevant  country-specific 
in  addressing 
assessed  Romania’s  progress 
recommendations adopted by the Council in 2019, 2020 and 2021, and took stock of 
Romania’s  implementation  of  the  recovery  and  resilience  plan,  building  on  the 
Recovery  and  Resilience  Scoreboard.  Based  on  this  analysis,  the  country  report 
identified gaps with respect to those challenges that are not addressed or only partially 
addressed  by  the  recovery  and  resilience  plan,  as  well  as  new  and  emerging 
challenges,  including  those  emerging  from  Russia’s  invasion  of  Ukraine.  It  also 
assessed  Romania's  progress  on  implementing  the  European  Pillar  of  Social  Rights 
and on achieving the EU headline targets on employment, skills and poverty reduction, 
as well as progress in achieving the UN’s Sustainable Development Goals.  

(11)  The  Commission  carried  out  an  in-depth  review  under  Article  5  of  Regulation  (EU) 
No  1176/2011  for  Romania  and  published  its  results  on  23  May  202211.  The 
Commission concluded that  Romania is  experiencing macroeconomic imbalances.  In 
particular, vulnerabilities relate to external accounts, linked to large fiscal deficits, and 
to competitiveness issues that are re-emerging. 

(12)  On 3 April 2020, the Council adopted Decision (EU) 2020/509 on the existence of an 
excessive deficit situation in Romania due to non-compliance with the deficit criterion 
in 201912. On 3 April 2020, the Council also issued a Recommendation with a view to 
bringing  an  end  to  the  situation  of  an  excessive  government  deficit  in  Romania  by 
2022 at the latest13. In light of the deep contraction in economic activity linked to the 
COVID-19 pandemic and of the related need for fiscal policies to support the recovery 
in  2021  and  2022,  on  18  June  2021  the  Council  issued  a  new  Recommendation  to 
Romania14  to  put  an  end  to  the  excessive  deficit  situation  by  2024  at  the  latest. 
Romania should reach a headline general government deficit target of 8.0% of GDP in 
2021, 6.2% of GDP in 2022, 4.4% of GDP in 2023, and 2.9% of GDP in 2024, which 
is  consistent  with  a  nominal  growth  rate  of  net  primary  government  expenditure  of 
3.4% in 2021, 1.3% in 2022, 0.9% in 2023 and 0.0% in 2024. This corresponds to an 
annual structural adjustment of 0.7% of GDP in 2021, 1.8% of GDP in 2022, 1.7% of 
GDP  in  2023  and  1.5%  of  GDP  in  2024.  The  procedure  has  been  held  in  abeyance 
since autumn 2021 following an assessment of effective action by the Commission. 

(13) 

In  2021,  based  on  data  validated  by  Eurostat,  Romania’s  general  government  deficit 
was 7.1% of GDP, while general government debt stood at 48.8% of GDP. This is in 

10 
11 
12 

13 

14 

SWD(2022) 638. 
COM(2022) 624. 
Council Decision (EU) 2020/509 of 3 April 2020 on the existence of an excessive deficit in Romania 
(OJ L 110, 8.4.2020, p. 58) 
Council Recommendation of 3 April 2020 with a view to bringing an end to the situation of an 
excessive government deficit in Romania (OJ C 116, 8.4.2020, p. 1). 
Council  Recommendation  of  18  June  2021  delivering  a  Council  opinion  on  the  2021  Convergence 
Programme of Romania (OJ C 304, 29.7.2021, p. 107) 

EN 

4 

  EN 

                                                 
line  with  the  2021  headline  deficit  target  recommended  by  the  Council.  The 
adjustment  in  the  structural  balance  for  2021  is  1.5  pps  of  GDP,  above  the 
recommended 0.7 pps.  

is  realistic 

in  2022  and  favourable 

(14)  The  macroeconomic  scenario  underpinning  the  budgetary  projections  in  the  2022 
thereafter. The 
Convergence  Programme 
government  projects  real  GDP  to  grow  by  2.9%  in  2022  and  4.4%  in  2023.  By 
comparison,  the Commission’s 2022  spring forecast  projects  lower  real  GDP  growth 
of 2.6% in  2022  and 3.6% in  2023. The differences are mainly due to  high  inflation 
affecting  the  purchasing  power  of  households,  the  impact  of  the  deterioration  in 
confidence  resulting  from  the  international  environment  on  consumption  and 
investment,  and  a  negative  contribution  from  net  exports,  as  prices  for  energy 
commodities  are  expected  to  keep  rising.  In  its  2022  Convergence  Programme,  the 
government  expects  that  the  headline  deficit  will  decrease  to  6.2%  of  GDP  in  2022 
and to 4.4% in 2023. The decrease in 2022 mainly reflects strong growth in nominal 
GDP, an expected increase in the efficiency of tax collection, a freeze on the majority 
of public sector wages, and the plan to keep the increase of expenditure on goods and 
services, social assistance and other transfers below the growth rate of nominal GDP. 
According to the 2022 Convergence Programme, the general government debt-to-GDP 
ratio is expected to increase to 49.4% in 2022 and to 49.7% in 2023. Based on policy 
measures  known  at  the  cut-off  date  of  the  forecast,  the  Commission  2022  spring 
forecast projects a government deficit for 2022 and 2023 of 7.5% of GDP and 6.3% of 
GDP, respectively. This is higher than the deficit projected in the 2022 Convergence 
Programme, mainly due to higher expected social and interest expenditure, the higher 
estimated  net  effect  of  measures  to  cope  with  the  surge  in  energy  prices,  a  more 
cautious assumption on the expected gains in tax collection, and the lack of specified 
consolidation  measures  on  the  expenditure  side  in  the  Programme.  The  Commission 
2022  spring  forecast  projects  a  higher  general  government  debt-to-GDP  ratio,  of 
50.9%  in  2022  and  52.6%  in  2023.  The  difference  is  mainly  due  to  the  higher 
projected deficits.  

(15) 

Based  on  the  Commission  spring  2022  forecast,  the  medium-term  (10-year  average) 
potential output growth is estimated at 3.6 %. However, this estimate does not include 
the impact of the reforms that are part of the Recovery and Resilience Plan, which can 
boost Romania’s potential growth. 

In 2022, the government phased out the majority of measures taken in response to the 
COVID-19 crisis, such that the temporary emergency support measures are projected 
to  decline  from  1.1%  of  GDP  in  2021  to  0.2%  of  GDP  in  2022.  The  government 
deficit is impacted by the measures adopted to counter the economic and social impact 
of  the  increase  in  energy  prices,  which  in  the  Commission  spring  2022  forecast  are 
estimated  at  0.7%  of  GDP  in  2022  and  0.1%  of  GDP  in  202315.  These  measures 
mainly consist of price caps on retail and wholesale prices on the expenditure side, and 
taxation of energy producers’ extra profits on the revenue side. Other measures include 
compensation  schemes  for  households  and  SMEs’  energy  and  gas  bills  and  energy 
allowances  to  vulnerable  consumers.  These  measures  have  been  announced  as 
temporary.  However,  in  case  energy  prices  remain  elevated  also  in  2023,  some  of 
these measures could be continued. Some of these measures are not targeted, notably 
the general price cap on energy prices for households. The government deficit is also 

15 

The figures represent the level of annual budgetary costs of those measures taken since autumn 2021, 
including current revenue and expenditure as well as – where relevant – capital expenditure measures. 

EN 

5 

  EN 

                                                 
impacted by the costs to offer temporary protection to displaced persons from Ukraine, 
which in the Commission 2022 spring forecast projected at 0.1% of GDP in both 2022 
and  202316,  as  well  as  the  increased  cost  of  defence  expenditure  by  0.5  percentage 
points of GDP in 2023.  

(16)  The projected 2022 headline deficit in the Commission 2022 spring forecast is 1.3 pps 
of  GDP  above  the  headline  deficit  target  recommended  by  the  Council,  while  the 
adjustment  in  the  structural  balance  is  forecast  to  be  -0.2  pps.  Of  GDP  in  2022, 
compared to the recommended 1.8 pps of GDP. This calls for a careful analysis based 
on the expenditure benchmark. In 2022, net primary expenditure growth (adjusted for 
one-offs and for the fiscal policy measures on the revenue side) is projected at 9.6% in 
the  Commission  2022  spring  forecast,  above  the  recommended  1.3%.  The  projected 
growth  in  aggregate  expenditure  in  2022  is  mainly  driven  by  the  increase  in  social 
expenditure  due  to  pension  indexation  and  the  budgeted  social  measures,  and  to  the 
budgetary cost of the measures to cap energy prices (net of the revenue measures) and 
to deal with the flow of displaced persons from Ukraine. The growth in intermediate 
consumption  expenditure,  mainly  driven  by  high  expected  consumer  price  inflation, 
also plays a role, although to a lesser extent. The deviation of net expenditure growth 
from the recommendation goes in the same direction as the deviation of the adjustment 
in  the  structural  balance,  although  with  a  larger  magnitude  (2.7  percentage  points  of 
GDP in the case of net expenditure growth compared to 2.0 percentage points of GDP 
in  the  case  of  the  structural  balance).  The  difference  can  be  partly  explained  by  the 
higher  revenue-to-GDP  ratio  forecasted  for  2022  in  the  Commission  2022  spring 
forecast compared to the Commission 2021 spring forecast (higher by 0.9 percentage 
point  of  GDP),  which  improves  the  structural  balance  but  does  not  affect  the 
expenditure benchmark. On the basis of the careful analysis, Romania is at risk of non-
compliance  with 
the  Council 
Recommendation of 18 June 2021. 

for  2022  established 

targets 

fiscal 

the 

in 

(17)  The projected 2023 headline deficit in the Commission 2022 spring forecast is 1.9 pps 
of  GDP  above  the  headline  deficit  target  recommended  by  the  Council,  while  the 
adjustment  in  the  structural  balance  is  forecast  to  be  0.0  pps.  of  GDP  in  2022, 
compared to the recommended 1.7 pps of GDP. This calls for a careful analysis based 
on the expenditure benchmark. In 2023, net primary expenditure growth (adjusted for 
one-offs and for the fiscal policy measures on the revenue side) is projected at 1.7% in 
the Commission 2022 spring forecast, above the recommended 0.9%, due to the lack 
of  concrete  measures  to  achieve  the  targets.  On  the  basis  of  the  careful  analysis, 
Romania is at risk of non-compliance with the fiscal targets for 2023 established in the 
Council  Recommendation  of  18  June  2021.  In  light  of  the  risks  of  not  meeting  the 
recommended  fiscal  targets  in  2022 and 2023, additional budgetary measures  appear 
relevant to comply with the adjustment path and achieve the correction of its excessive 
deficit by 2024. 

16 

The total number of displaced persons from Ukraine to the EU is assumed to gradually reach 6 million 
by  the  end  of  2022,  and  their  geographical  distribution  is  estimated  based  on  the  size  of  the  existing 
diaspora, the relative population of the receiving Member State, and the actual distribution of displaced 
persons from Ukraine across the EU as of March 2022. For budgetary costs per person, estimates are 
based on the Euromod microsimulation model of the Commission’s Joint Research Centre, taking into 
account both cash transfers people may be eligible for as well as in-kind benefits such as education and 
healthcare. 

EN 

6 

  EN 

                                                 
(18) 

(19) 

In  the  2022  Convergence  Programme,  the  general  government  deficit  is  expected  to 
gradually decline to 2.95% of GDP in 2024 and to 2.9% of GDP by 2025. Therefore, 
the general government deficit is planned to go below 3% of GDP by 2024. The fiscal 
consolidation  is  mainly  planned  to  occur  on  the  expenditure  side  of  the  budget. 
However,  no  information  is  provided  on  the  envisaged  underlying  consolidation 
measures. According to the Programme, the general government debt-to-GDP ratio is 
expected  to  stabilise  by  2025,  specifically  with  a  decrease  to  49.4%  in  2024,  and  to 
48.9% in 2025. Based on the Commission’s analysis, debt sustainability risks appear 
high over the medium term. 

in  addition 

in  2019  and  2020, 

In accordance with Article 19(3), point (b) and Annex V, criterion 2.2, to Regulation 
(EU) 2021/241, the recovery and resilience plan includes an extensive set of mutually 
reinforcing reforms and investments  to be implemented by 2026. These help address 
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 
to  any  country-specific 
recommendations  issued  up  to  the  date  of  adoption  of  a  plan.  In  particular,  the  plan 
addresses  the  full  digitalisation  of  the  tax  administration  and  gradual  phase  out  of 
excessive  tax  incentives  with  the  aim  of  improving  the  quality  and  sustainability  of 
public finances. The plan also contributes to ensuring the sustainability and fairness of 
the  public  pension  system.  Healthcare  reforms,  accompanied  by  digitalisation 
investments,  are  expected  to  improve  access,  cost-efficiency  and  resilience  of 
healthcare.  Evidence-based  decision  making, 
long-term  planning  and  public 
consultations, as well as measures aimed at improving the public procurement process 
are  expected  to  contribute  to  improving  the  quality  and  effectiveness  of  the  public 
administration  leading  to  better  take-up  of  EU  funds.  By  strengthening  the 
independence  and  increasing  the  efficiency  of  the  judiciary,  improving  access  to 
justice, and stepping up the fight against corruption, the plan aims to address the main 
issues related to respect of the rule of law in Romania in accordance with the relevant 
case-law  of  the  Court  of  Justice  of  the  European  Union  and  taking  into  account 
recommendations  made  in  the  Cooperation  and  Verification  Mechanism  (CVM) 
reports, the reports by the Group of States against Corruption (GRECO), the opinions 
of the Venice Commission, and the Rule of Law Reports. Key reforms on minimum 
wage setting and minimum inclusion income, on strengthening corporate governance 
of state-owned enterprises and on social dialogue also address long-standing country-
specific  recommendations.  The  plan  also  establishes  a  unitary,  inclusive  and  quality 
early-childhood education and care system accompanied by investments in childcare. 
The  plan  promotes  sustainable  and  digital  investments  and  supports  research  and 
development  activities.  Key  reforms  and  investments  on  decarbonisation,  on  the 
establishment  of  a  government  cloud  and  the  deployment  of  the  electronic  identity 
card contribute to supporting the green and digital transitions. 

(20)  The  implementation  of  the  recovery  and  resilience  plan  of  Romania  is  expected  to 
contribute  to  making  further  progress  on  the  green  and  digital  transition.  Measures 
supporting  the  climate  objectives  in  Romania  account  for  41%  of  the  plan’s  total 
allocation, while measures supporting digital objectives account for 21% of the plan’s 
total allocation. The fully-fledged implementation of the recovery and resilience plan, 
in  line  with  the  relevant  milestones  and  targets,  will  help  Romania  swiftly  recover 
from  the  fallout  of  the  COVID-19  crisis,  while  strengthening  its  resilience.  The 
systematic  involvement  of  social  partners  and  other  relevant  stakeholders  remains 
important  for  the  successful  implementation  of  the  recovery  and  resilience  plan,  as 

EN 

7 

  EN 

well  as  other  economic  and  employment  policies  going  beyond  the  plan,  to  ensure 
broad ownership of the overall policy agenda.  

(21)  Romania submitted the cohesion  policy programming documents17 on 14 April 2022 
for the Partnership Agreement and on 6 May 2022 for its first programme. In line with 
Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 
2021, Romania shall take into account the relevant country-specific recommendations 
in the programming of the 2021-2027 cohesion policy funds. This is a prerequisite for 
improving the effectiveness and maximising the added value of the financial support 
to  be  received  from  cohesion  policy  funds,  while  promoting  the  coordination, 
complementarity and coherence between these funds and other Union instruments and 
funds.  The  successful  implementation  of  the  Recovery  and  Resilience  Facility  and 
cohesion policy programmes also depends on the removal of bottlenecks to investment 
to support the green and digital transitions and balanced territorial development. 

(22) 

In  response  to  the  mandate  by  the  EU  Heads  of  State  or  Government  set  out  in  the 
Versailles Declaration, the REPowerEU plan aims to phase out the European Union’s 
dependence on fossil fuel imports from Russia as soon as possible. For this purpose, 
the most suitable projects, investments and reforms at national, regional and EU level 
are being identified in dialogue with the Member States. These measures aim to reduce 
overall reliance on fossil fuels and shift fossil fuel imports away from Russia. 

(23)  According to 2020 data, Romania’s energy mix is heavily based on fossil fuels; oil and 
gas  represent  around  30%  each  while  coal  makes  up  another  10%.  Romania  itself 
produces about 80% of the gas it consumes, while the remainder comes from Russia 
(Across  the  EU  generally,  gas  imports  make  up  most  consumption  with  on  average 
44% of imports coming from Russia). As for crude oil, imports from Russia represent 
32% of the total, compared with the EU average of 26%.18 Romania is committed to a 
coal phase-out by 2032. To achieve this ambitious target, the Romanian recovery and 
resilience  plan  and  other  EU  funds,  such  as  the  Modernisation  Fund,  include 
significant  investments  in  fostering  decarbonisation  through  the  installation  of  new 
renewable  energy  capacity.  However,  the  green  transition  and  the  large  forecast 
in  energy 
increase  in  energy  consumption  will  require  significant  upgrades 
transmission  networks  and  speeding  up  the  deployment  of  green  infrastructure.  This 
will  require  an  improved  regulatory  framework  and  greater  investment,  as  well  as 
empowering  consumers  to  enable  them  to  actively  participate,  either  individually  or 
collectively  through  energy  communities,  in  the  electricity  market.  Frontloading 
investment  in  infrastructure  such  as  storage,  as  well  as  gas  and  electricity 
interconnections with neighbouring countries could increase diversification of energy 
supply, market stability and adaptability to regional variances. This is to be seen in the 
context of both Russia’s invasion of Ukraine and reducing dependence on imports, as 
the energy system is still heavily reliant on fossil fuels. Moreover, offshore gas fields 
discovered  in  the  Black  Sea  offer  an  important  opportunity  for  Romania  to  build 
further  its  energy  independence  and  significantly  support  neighbouring  Members 
States’  in  reducing  their  dependency  on  Russian  natural  gas  imports.  New 
infrastructure and network investments  related to  gas  are recommended to  be future-
proof where possible, in order to facilitate their long-term sustainability through future 

17 
18 

Regulation (EU) 2021/1060, OJ L 231, 30.06.2021, p. 159.  
Eurostat (2020), share of Russian imports over total imports. For the EU27 average, the total imports 
are based on extra-EU27 imports. For Romania, total imports include intra-EU trade. Crude oil does not 
include refined oil products. 

EN 

8 

  EN 

                                                 
repurposing  for  sustainable  fuels.  Moreover,  offshore  gas  fields  discovered  in  the 
Black  Sea  offer  an  important  opportunity  for  Romania  to  build  further  its  energy 
independence  and  significantly  support  neighbouring  Members  States’  in  reducing 
their  dependency  on  Russian  natural  gas  imports.  Simultaneously,  the  Romanian 
recovery and resilience plan envisages EUR 3 billion in energy efficiency measures in 
public and private residential buildings as well as the industrial sectors. Going beyond 
this first renovation wave is necessary to reduce energy consumption and dependence 
on  fossil  fuels,  as  the  recovery  and  resilience  plan’s  target  will  not  cover  the  entire 
building stock. Romania needs to further improve the policy framework to accelerate 
the renovation of buildings. Further increase in ambition for reducing greenhouse gas 
emissions and increasing of renewables and energy efficiency will be needed to be in 
line with the ‘Fit for 55’ objectives.  

(24)  While  the  acceleration  of  the  transition  towards  climate  neutrality  and  away  from 
fossil fuels  will create significant  restructuring  costs  in  several  sectors,  Romania can 
make  use  of  the  Just  Transition  Mechanism  in  the  context  of  cohesion  policy  to 
alleviate the socio-economic impact  of the transition  in  the most  affected  regions.  In 
addition,  Romania  can  make  use  of  the  European  Social  Fund  Plus  to  improve 
employment opportunities and strengthen social cohesion. 

(25)  The  Council  has  examined  the  2022  Convergence  Programme  of  Romania  and  its 

opinion19 is reflected in particular in recommendation (1) below. 

(26) 

In the light of the Commission’s in-depth review and this assessment, the Council has 
examined  the  2022  National  Reform  Programme  and  the  2022  Convergence 
Programme.  Its  recommendations  under  Article  6  of  Regulation  (EU)  No  1176/2011 
are  reflected  in  recommendations  1,  2  and  3  below.  Fiscal  policies  referred  to  in 
recommendation 1 help inter alia address imbalances linked to the large and persistent 
current  account  deficit  as  better  fiscal  balances  will  help  reducing  the  large  external 
financing  needs  of  Romania’s  economy  as  a  whole.  Policies  referred  to  in 
recommendation  2  help  inter  alia  address  vulnerabilities  linked  to  competitiveness. 
Policies referred to in recommendation 3 help inter alia address vulnerabilities linked 
to the external accounts in the longer term. 

HEREBY RECOMMENDS that Romania take action in 2022 and 2023 to:  

1. 

2. 

Pursue fiscal policies in line with the Council Recommendation of 18 June 2021 with 
a  view  to  bringing  an  end  to  the  situation  of  an  excessive  government  deficit  in 
Romania.  

Proceed with the implementation of its recovery and resilience plan, in line with the 
milestones  and  targets  included  in  the  Council  Implementing  Decision  of  3 
November 2021. Swiftly finalise the negotiations with the Commission of the 2021-
2027  cohesion  policy  programming  documents  with  a  view  to  starting  their 
implementation.  

19 

. 

EN 

9 

  EN 

                                                 
3. 

Reduce overall reliance on fossil fuels. Facilitate the further expansion of sustainable 
energy production by accelerating the development of renewables, upgrading energy 
transmission grids and increasing interconnection with neighbouring Member States. 
Increase the pace and ambition of renovations to advance the energy efficiency of the 
building stock. 

Done at Brussels, 

For the Council 
The President 

EN 

10 

  EN