With only 13% of the investments and reforms undertaken through the National Recovery and Resilience Program (PNRR) completed and only a year and a half to complete the rest, Romania risks losing the 19 billion euros not yet spent.
There is already talk of modifying the PNRR and abandoning some investments that cannot be completed by the end of August 2026. One of these projects is the gas-fired power plant in Craiova.
“Technically speaking, it is difficult to impossible. That is the reality. But what option do we have?! Let’s do nothing and wake up in 2026 with a lignite-based CHP, polluting, inefficient and losing money, or let’s start the modernization project now that we have this important grant. It is a 300 MW investment, a significant one. And if it is not 100% finished by 2026, towards the end of the year, it is still a vital project that Romania must do. The city’s heating is provided by an old lignite-fired power plant that pollutes,” said Energy Minister Sebastian Burduja.
The projects to modernize the 162 kilometers between Caransebeș and Arad, for which Brussels is giving us free money, also have a slim chance of being finished. The most advanced is the 54-kilometer lot between Lugoj and Timișoara. Here, the constructor has completed about 20% of the works, according to December 2024 data from CFR SA, the company that manages the railway.
The rehabilitation of the 166 kilometers between Cluj and Episcopia Bihor is progressing slowly. The top performers here are Alstom and Arcada, having completed 31% of the necessary work to allow passenger trains to travel at 160 km/h between Aghireș and Poieni. The situation is worse on the remaining sections. As a result, Romania risks missing out on the free funds provided by Brussels and may have to find alternative financing sources for these projects.
“These investments are crucial for the regional development of those areas, so the projects must continue. However, instead of receiving free money, we will have to borrow funds to finance them. Essentially, we lose twice,” said Adrian Codîrlașu, president of CFA Romania, for Digi24.
So far, Romania has received €9.4 billion from the National Recovery and Resilience Plan (PNRR), including both grants and loans. However, €19 billion remains to be accessed, of which nearly €7.8 billion is free money. Other countries have already modified their plans, some multiple times, to ensure they claim as much funding as possible. Romanian officials are only now considering such adjustments.
“Our main goal is to maximize the absorption of grants. We will propose moving well-implemented projects from the loan component to grants and shifting slower-moving projects from grants to loans,” explained Marcel Boloș, Minister of European Investments, to Digi24.
While countries like Poland, Portugal, and Italy have already submitted 5, 6, or even 7 payment requests to the European Commission, Romania has only submitted 3. So far, it has received funds for just 2, as the most recent request—worth €2 billion—is under review, with €1.76 billion at risk of being lost. Key issues raised by the Commission include special pension reform and political appointments at state-owned companies, particularly in the energy sector.
Energy Minister Sebastian Burduja stated that he is awaiting the EU Council’s decision to begin the process of revoking individuals whom Brussels flagged as being appointed to the boards of eight energy companies without meeting the clear criteria set in the PNRR. The European Commission has cited conflicts of interest and political influence in these appointments.
“We will then launch the replacement procedures under Emergency Ordinance 109, and I expect the process to be completed within six months so that we can access the full amount of funds. Initially, €290 million was withheld due to this issue. After negotiations, we managed to recover €60 million. Those who are revoked may seek legal redress, potentially leading to compensation payments. While we would prefer to avoid this, it is their right. However, between paying a few million in compensation and facing a €200 million penalty, it is in the country’s best interest to follow the Commission’s requirements and proceed with the revocations and replacements,” Burduja explained.
Romania has access to over €28 billion through PNRR, which should be obtained through 8 payment requests upon completing hundreds of reforms and investments. The government has time to submit only 2 or 3 more requests before the program expires. Leaving that money on the table could have severe consequences.
“European funds, including those from PNRR, cohesion funds, and other programs, drive economic growth, development in local areas beyond major cities, job creation, and profits for Romanian companies. Avoiding a recession this year is closely linked to European fund absorption,” said Adrian Codîrlașu, president of CFA Romania.
Additionally, credit rating agencies have emphasized the importance of EU funds and PNRR in maintaining Romania’s investment-grade rating, despite recently lowering the country’s outlook.
“Our two key anchors for staying within investment-grade status are our EU membership, which prevents excessive economic deficits, and access to EU funds. Losing part of this financial anchor could jeopardize our rating,” Codîrlașu added.
This year’s budget projects nearly 88 billion lei in EU fund inflows—double last year’s amount—making it an extremely ambitious target.