Adjustments made to PNRR

The Romanian authorities have made certain adjustments to the National Recovery and Resilience Plan

Daniela Budu, 06.05.2021, 14:00

The
National Recovery and Resilience Plan (PNRR) has been adjusted as per the
recommendations of the European Commission regarding major reforms and
investment projects which Bucharest authorities want to implement over the coming
period. Prime Minister Florin Cîţu has called on his Cabinet to finalize all
proposals for this document ahead of talks due to take place next week with Commission
representatives. Florin Cîţu said the Plan has been adjusted to reflect the
Commission’s recommendations, from 42 billion Euro to 29 billion Euro, after
cutting back on investments in a number of fields. The Prime Minister said PNRR
will absorb all the funds allotted to Romania.

It’s
time we accelerated things a bit. We have a few details to work out. I’m sure
PNRR will represent Romania’s development interests in the coming period and,
of course, we will be implementing them. There are a lot of things to discuss,
but I am sure PNRR will be good for us, and we will be attracting all the funds
earmarked for Romania.

The
adjustment of the plan involved modifications to allocations to the project Educated
Romania. Education will therefore receive 3.7 billion Euro, way above the EU
average, Minister for Investments and European Projects, Cristian Ghinea, has
explained.

As
per the European Parliament’s recommendation, I’ve said from the very beginning
that education is a priority. PNRR originally allotted 4 billion Euro to
education, which now has been cut back to 3.7 billion. Right now, 12% of the
Plan’s funds go to education, which is way above the EU average and the
recommendation of the European Parliament.

PNRR
could help adjust the public budget deficit to around 3% of the GDP in 2024, by
supporting the domestic market, a convergence report published by the National
Bank of Romania reads. According to the report, PNRR and the Multiannual
Financial Framework are extremely important for Romania, helping correct the
budget deficit, reduce the impact of the recession and, by means of structural reforms
and quality public investments, influence the evolution of the GDP on the
medium-term, the report reads. In Tuesday’s session, the Government in
Bucharest adopted the National Convergence Plan, providing for reforms of the
pension and salary systems, state-owned companies and the public administration.
(V.P.)