EU suspends major financial support to Romania pending key governance reforms

The European Commission has suspended a significant funding tranche of €869 million to Romania, citing the country’s failure to meet two critical conditions tied to the disbursement.

This announcement was made by Romania’s Minister for Investment and European Projects, Marcel Boloș, during a press conference, Caliber.Az reports, citing foreign media.

The withheld funds consist of an €814 million grant and a €55 million loan, earmarked as part of the post-COVID-19 economic recovery program designed to support Romania’s financial resurgence. However, the Commission’s decision to halt the payment stems from Romania’s non-compliance with key reform benchmarks.

Specifically, the European Commission objected to the government’s failure to appoint the head of the Agency for Monitoring and Assessing the Performance of State-owned Enterprises (AMEPIP) in accordance with its stipulated criteria. Additionally, the Commission expressed concern over the government’s rollback of pension reforms, which had aimed to increase pension benefits for former civil servants.

Minister Boloș warned that the Romanian government has until November 28 to implement the required reforms and secure approval from the European Commission. Should these conditions remain unmet, the suspended funds will be irrevocably returned to the EU budget, representing a significant financial setback for Romania’s recovery efforts.

By Vafa Guliyeva