National Plan for Recovery and Resilience in Romania- 2021 Short presentation
The European Union has decided to set up a temporary financial instrument – #NextGenerationEU, worth € 750 billion, separated from the EU’s long-term budget, the Multiannual Financial Framework (MFF), for the period 2021-2027.
The decision was based on the current pandemic and economic context, the financial instrument being designed to support Member States in meeting the challenges posed by the COVID-19 crisis and its economic consequences.
The central pillar of the new financial instrument is the Recovery and Resilience Mechanism. It has allocated a total budget of 672.5 billion euros, consisting of both loans (360 million euros) and grants (312.5 million euros).
The aim is to mitigate the economic and social impact of the COVID-19 pandemic and to make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities offered by the transition to a green economy and digitization. The specific objective of the mechanism is to provide financial support to Member States to achieve milestones and targets established in reforms and investments, as set out in their own recovery and resilience plans.
In order to achieve this objective, Member States shall draw up national recovery and resilience plans, which practically set out a Member State’s agenda for reforms and investments, including practical measures for their implementation.
In Romania, the coordinator of the elaboration process of the Resilience and Recovery National Plan (RRNP) is ensured by the Ministry of European Investments and Projects. Following an extensive public consultation process, on 19.03.2021, the Ministry of European Investments and Projects submitted to the Government in the first reading RRNP. This document must be submitted to the European Commission by 30 April 2021 for approval. Another 2 months of negotiations between the Commission and the Member State. We estimate that only in the second half of this year we could have a clear picture of the funding that can be accessed under this Plan.
Romania has a budget of approximately 29.2 billion euros. Initially, the budget was € 30.5 billion, consisting of € 13.8 billion in grants and € 16.7 billion in loans, but it was reduced following the recalculation of Gross Domestic Product in 2020. Components included in the Plan presented are containing reforms and investments in an amount of approximately 41 million euros.
The full plan can be seen here.