September 28 (SeeNews) - The European Commission (EC) said that it has adopted a positive assessment of Romania's recovery and resilience plan, an important step towards the EU disbursing 14.2 billion euro ($16.6 billion) in grants and 14.9 billion euro in loans to Romania under the Recovery and Resilience Facility (RRF).
This financing will support the implementation of the crucial investment and reform measures outlined in Romania's recovery and resilience plan. It will play a crucial role in enabling Romania to emerge stronger from the COVID-19 pandemic, the EC said in a press release on Monday evening.
Now, the EU Council has four weeks to adopt the Commission's proposal to endorse Romania's plan. The Council's approval of the plan would allow for the disbursement of 3.6 billion euro to Romania in pre-financing, representing 13% of the total allocated amount.
The Commission will authorise further disbursements based on the satisfactory fulfilment of the milestones and targets outlined in the recovery and resilience plan, reflecting progress on the implementation of the investments and reforms, it said.
"By focusing on measures to secure the green and digital transitions, from improving the energy efficiency of buildings to improving connectivity and digital skills, the measures set out in the plan have the potential to be truly transformative. We will stand with you in the years to come to ensure that the ambitious investments and reforms set out in the plan are fully implemented," EC president Ursula von der Leyen said during her visit in Bucharest.
The Commission's assessment fiound that Romania's plan devotes 41% of the plan's total allocation on measures that support the green transition, such as the phasing out coal and lignite power production by 2032. The Commission also found that Romania's plan devotes 21% of its total allocation on measures that support the digital transition in administration and businesses and education.
Also, EU's executive body considers that the plan includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Romania.
Romania's plan proposes specific investment projects which address issues that are common to all member states in areas that create jobs and growth and are needed for the green and digital transition. For instance, the Romanian plan includes a project to build a secure government cloud computing infrastructure to allow for the interoperability of public administration platforms and data services, fostering the adoption of digital public services for citizens and companies, and the deployment of electronic identity cards for 8.5 million citizens.
In November 2020, when the government presented the main ideas of the plan, the EC criticized the plan for the lack of reforms in fields considered a priority under the Green Deal.
The Recovery and Resilience Facility makes 723.8 billion euro in loans and grants available to support reforms and investments undertaken by member states. The facility entered into force in February and will finance reforms and investments in member states until December 31 2026.
($=0.8547 euro)