The European Commission has warned Romania that it is dragging its feet on reforms it has to make to receive billions of EU recovery funds.
It said its fiscal deficit in a crowded election year was putting billions of euros for Bucharest at risk.
Romania has struggled to tighten its budget deficit since before the Covid-19 pandemic, holds local, presidential, parliamentary and European elections this year.
So far, it has received some 9 billion euros out of a total package of 28.5 billion euros worth of grants and loans available until 2026 under the EU’s Recovery and Resilience Facility.
However, the payments depend on reforms, including fiscal changes, and Romania’s progress has stalled.
Bucharest sent a third disbursement request in December. Commission representatives are in Bucharest this week to discuss missed targets and deadlines.
“The third payment … is delayed compared with where we should have been,” the Commission’s RRF taskforce director Celine Gauer told a conference. “We see many investments haven’t actually started. My message is one of urgency.”
Declan Costello, the deputy head of the Commission’s directorate for economic and financial affairs said he expected the deficit to be „closer to, if not above 7% of GDP this year.”
Romania initially committed to bringing its budget deficit below the EU’s 3% of GDP ceiling by 2024. However, it currently expects to meet that target only by 2027.
The European Commission starts disciplinary steps over Romania’s high budget deficit
