Minister of investments and European projects Marcel Bolos admits that the disbursement of loans and grants related to the third request under the Resilience facility (EUR 3 billion) is at risk due to the Constitutional Court’s ruling on the so-called special pensions (the country pledged to alleviate their macroeconomic impact) and government’s failure to appoint independent management in state companies. 

The milestones set for the fourth request are even more challenging, Minister Bolos also said in an interview with Profit.ro.

Romania’s government relies heavily on the disbursement of funds from the European Union’s budget this year. Transfers from the EU budget are expected to more than double (+104% y/y) to RON 87.7 billion or 4.6% of GDP from only 2.4% of GDP in 2024.

Minister Bolos said that Romania will ask for deferring the fiscal reforms related to the fourth request under the Resilience Facility (milestone 207), but the decision will be taken by the European Commission. 

He also said that Romania’s government would request more time to draft the law on the pay policy in the budgetary sector – a promise repeatedly made and breached by the Romanian executive over the past decade. 

The public sector wage law was linked, under the seven-year fiscal consolidation plan, to the evolution of the budget deficit. Thus, the law would only apply after the budget deficit fell below 5% of GDP, an evolution foreseen in the fiscal plan only for 2028.

The fourth request also includes an automobile pollution fee that is not part of the tax reform but would have a major impact due to the scale it could reach. Millions of cars could be targeted. Past attempts to implement such a fee were challenged in court, and the state had to return the money collected.

iulian@romania-insider.com

(Photo source: Inquam Photos/Sabin Cirstoveanu)