Romania loses 770 million euros in EU funds - Political deadlock hinders public sector wage reform
Romania is expected to lose at least 770 million euros in European Union funds after the main political parties failed to approve the public sector wage reform on time, one of the conditions for benefiting from the post-pandemic recovery plan funds.
The deadline for completing the reforms expired on August 31, while the political parties failed to reach an agreement on the new wage law. According to European sources, the amount of about 770 million euros is expected to be deducted from the 8.44 billion euros that Romania still has available from the recovery plan funds, which total 21.41 billion euros.
The final loss will be determined by the European Commission, during the assessment of the final payment request that Romania is expected to submit by the end of September.
Romanian President Nicușor Dan has stated that the reform is almost technically complete and could be approved by the end of the year. He described the issue as complex, due to its social and economic impact.
The political clashes have also been accompanied by strong opposition from unions. Representatives of public employees claim that the changes could lead to wage cuts for certain categories and that the proposed mechanisms for adjusting to inflation are not sufficient. Unions have staged protests. Meanwhile, the disagreements have reignited clashes within the pro-European political camp.
Another clash concerns a law on the integrity and conflicts of interest of public officials. The law was adopted ahead of schedule, but a controversial provision has drawn criticism from the European People's Party and Renew Europe groups in the European Parliament.
If the European Commission deems the law to be inconsistent with EU standards on the rule of law, the corresponding payment could be lifted and Romania could face further financial losses from European funds.
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