Ilie Bolojan, firm message about PNRR, before the meeting organized by Nicusor Dan, in Cotroceni, with the leaders of the pro-European parties
Ilie Bolojan pointed out, before the meeting in Cotroceni with Nicusor Dan and the leaders of the pro-European parties, that accessing the money from PNRR is essential and depends on the adoption of some reforms and the fulfillment of several milestones assumed by Romania.
ILie Bolojan, firm regarding the PNNR milestones. PHOTO: gov
In a message published on Monday, April 27, on Facebook, shortly before the consultations at the Cotroceni Palace convened by President Nicușor Dan with the leaders of the pro-European parties, Ilie Bolojan detailed the government's position regarding the implementation of the National Recovery and Resilience Plan (PNRR) and the necessary reforms to access European funds.
The Prime Minister emphasized that the money from PNRR represents an essential resource for the development of Romania, given that approximately 10 billion euros must be attracted by August, an amount that represents a significant part of public investments.
He pointed out that these funds are directed to major infrastructure and development projects, such as the construction of highways, including the Moldova Highway, the modernization and construction of schools and hospitals, the electrification of railways and the rehabilitation of public buildings.
“Access to European funds is vital for Romania's development”, the prime minister said.
Ilie Bolojan explained that access to European money is conditional on the fulfillment of some reforms and so-called milestones assumed by Romania within the PNRR. By summer, the authorities must complete dozens of such targets, each with a direct impact on the amount of money received or lost.
According to the prime minister, the Ministry of Investments and European Projects has identified nine major milestones, on which more than 7 billion euros depend, necessary for the continuation of public investments. In order to fulfill them, it is necessary to adopt nine normative acts that cover areas such as taxation, energy, public administration, the environment and public sector payroll.
Bolojan stated that these reforms will be an important test for the political class, as their voting and implementation are essential for maintaining European funding.
The nine problematic milestones
“Access to European funds is vital for Romania's development.
The 10 billion euros from the PNRR program, which must be accessed by August, represent a third of the total public investments.
What is financed with this money
A good part of the construction of highways (Autostrada Moldovei, for example), schools and hospitals, railway electrification works and rehabilitation of public buildings. These are works that change the face of localities and contribute to the development of regions.
In order to collect this European money, we have committed to reforms and to meet certain conditions, the so-called milestones.
Until the summer, we still have several dozen milestones to fulfill. Each one means money: we get it if we meet milestones or lose it if we don't.
The Ministry of European Projects has inventoried the most important 9 milestones, on which more than 7 billion euros depend, which we will need to be able to finish the investment works.
How we reach milestones
We need to pass 9 laws that will regulate different areas, as described below, from public sector pay to tax or energy issues. The voting of the 9 laws will be, beyond disputes and different approaches, a test of responsibility for the Romanian political class.
Accessing European funds, by meeting milestones and finalizing investments, making payments to beneficiaries, finishing works and receiving them are the Government's priorities in the coming period.
The main milestones are:
1. Milestone no. 431;
Coordinator: National Integrity Agency / Ministry of Justice;
Measure: Updating the integrity legal framework for the public office;
Name: Entry into force of the consolidated law on integrity;
Indicator: The consolidated law on integrity will enter into force following a prior assessment and analysis of existing laws on integrity;
Penalty: 771 million euros.
2. Milestone no. 509;
Coordinator: Ministry of Agriculture;
Measure: Creating a legal framework for the use of state lands as acceleration zones for investments in renewable energy sources;
Name: Entry into force of legal acts;
Indicator: Law for the introduction of a framework regarding the use of state-owned lands, administered by the State Domains Agency (ADS), as areas for accelerating investments in renewable energy sources (SRE);
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Penalty: 771 million euros.
3. Milestone no. 315;
Coordinator: Ministry of Development;
Measure: Development of the planning system – the land use, urban planning and construction code;
Name: Entry into force of the Land Use, Urban Planning and Construction Code;
Indicator: CATUC will include:
* reducing the deadlines for issuing administrative documents, as well as introducing new mechanisms to ensure digitized administrative processes in construction;
* the possibility of creating planning structures at the level of functional urban areas;
* requirements regarding the updating and transposition of spatial and urban plans in geographic information systems (GIS), as well as requirements regarding their alignment with the following principles of Romania's urban policy: promoting sustainable transport and increasing road safety, the use of nature-based solutions/green and blue infrastructure, including at the level of functional urban and rural areas;
* the requirement that updated urban planning documents include provisions aimed at reducing travel time and distance for the population in functional urban and rural areas;
Penalty: 972 million euros.
4. Milestone no. 119a;
Coordinator: Ministry of Energy;
Measure: Reform the electricity market, by replacing coal in the energy mix and supporting a legislative and regulatory framework stimulating private investment in the production of electricity from renewable sources;
Name: Decommissioning the 710 MW coal/lignite electricity production capacity;
Indicator: Modification of the decarbonization law, depending on the conclusions of the adequacy study carried out for Transelectrica, to regulate the coal-based electricity production capacity required to be maintained in operation;
Penalty: 771 million euros.
5. Milestone no. 128;
Coordinator: Ministry of Energy;
Measure: Decarbonisation of the heating-cooling sector;
Name: Entry into force of legislative acts introducing measures to decarbonise the heating and cooling sector;
Indicator: Legislation introducing measures to decarbonise the heating and cooling sector:
i) the responsibilities of central and local authorities for the management of the heating and cooling sector and the extension of the application of the Corporate Governance Law to district heating providers;
ii) the framework for ensuring the sustainability and traceability of biomass, in order to prevent any negative impact of the use of bioenergy on biodiversity and forests;
iii) provisions regarding the diversification of the energy mix in the heating and cooling sector, reducing the forest biomass component;
iv) allowing prosumers (including apartment blocks and tenants' associations) to produce and sell excess solar and possibly wind energy in more flexible forms, as well as introducing incentives, including quantitative compensation;
Penalty: 771 million euros.
6. Milestone no. 197;
Coordinator: Ministry of Finance;
Measure: Reform of the National Fiscal Administration Agency (ANAF) through digitization;
Name: Structural reform of ANAF and legislative changes to increase the degree of compliance with fiscal obligations;
Indicator: Legislation regarding the bonus system of ANAF inspectors (bonus-malus);
Penalty: 771 million euros.
7. Milestone no. 4;
Coordinator: Ministry of the Environment;
Measure: Reconfiguration of the economic mechanism of the “Romanian Waters” National Administration (ANAR), in order to ensure the modernization and maintenance of the national water management system;
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Name: Entry into force of the law introducing changes to regulate the new economic mechanism for water resources in Romania;
Indicator: Legislation for the regulation of the new economic mechanism for water resources in Romania. The new mechanism will increase the correlation between the revenue system in the water field, regulated by ANAR, and the costs related to each category of users it supplies;
Penalty: 972 million euros.
8. Milestone no. 420;
Coordinator: Ministry of Labour;
Measure: Development of a fair and uniform salary system in the public sector;
Name: Entry into force of the new legal framework regarding the remuneration of public sector employees;
Indicator: Legislation on the remuneration of public sector employees, which will establish a unified calculation methodology, to ensure a fiscally sustainable, fair and performance-related wage system;
Penalty: 771 million euros.
9. Milestone no. 442;
Coordinator: General Secretariat of the Government;
Measure: Improving the procedural framework for implementing corporate governance principles within state-owned enterprises;
Name: Reduction of interim appointments in administrative/supervisory boards by 50% for centrally state-owned enterprises and by 10% for locally-owned enterprises;
Indicator: Legislation on the regulation of the proportional regime for the reporting obligations of state-owned enterprises under the responsibility of local public authorities;
Penalty: 771 million euros”, explained Prime Minister Ilie Bolojan on Facebook.
