The Government of Romania failed to close on time all nine milestones included in the National Recovery and Resilience Program that it had to fulfil for the third quarter of 2023. It is still struggling with requirements related to Payment Request 3, such as the special pension reform not yet settled with the Commission.

Failure to get the disbursements related to Payment Requests 3 and 4 cost the state budget EUR 5.5 billion, according to an analyst of the state of play published by Cursdeguvernare.ro.

Namely, Romania adopted the action plan for the national circular economy strategy in time and enforced the legislative package to implement the "Educated Romania" project. Among the milestones delayed is the completion and application of a green budget planning methodology supposed to be completed by the Ministry of Finance. 

In turn, the Finance Ministry is busy these days finding more conventional financing resources to accommodate the Pension Law (another Resilience Facility milestone) supposed to cost 3% of GDP in 2025 compared to the no-policy change scenario. 

Also not completed at the end of September, there is the signing of the contracts from cross-border and multinational projects for the realization of processors with low energy consumption and semiconductors. 

However, the delays don't matter much, given that these outstanding milestones are related to Payment Request number 5, and Romania hasn't even submitted Payment Request number 3 yet. 

Furthermore, 10 other milestones are outstanding related to Payment Request 3. The reform of special pensions is in the process of clarification with the Commission, still putting at risk the disbursement of EUR 1.4 billion (out of EUR 3.1 billion disbursement attached to payment Request 3) that would be withheld for failure to carry out the reform in a manner accepted by the Commission. 

iulian@romania-insider.com

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