Romania's acting PM warns 4.5 billion euros in EU funds at stake as PSD blocks PNRR reforms

A public counter-offensive on Facebook

Interim Prime Minister Ilie Bolojan took to Facebook on 15 July to respond to Social Democratic Party (PSD) leader Sorin Grindeanu, who had said days earlier that no PNRR projects were in parliament and that the executive should not order the legislature to vote. Bolojan posted screenshots of the legislative files currently under parliamentary procedure, listing projects in the Senate and the Chamber of Deputies. He argued that the bills are not proposals of a single government but the outcome of negotiations with the European Commission, and their adoption is vital for Romania.

The legislative projects that will come before parliament are not the proposals of a government or of a minister. They are the result of negotiations with the representatives of the European Commission, based on what we have committed to fulfil.

The six bills at the centre of the dispute

In the Senate, two projects are under debate: a law establishing a performance reward mechanism for staff of the fiscal and customs administration under the Ministry of Finance, and a bill amending Government Emergency Ordinance no. 57/2019 on the Administrative Code. In the Chamber of Deputies, three legislative initiatives have been identified: a Law on the Territorial Planning, Urbanism and Construction Code, a law approving Emergency Ordinance no. 20/2026 on the decarbonisation of the energy sector, and a bill completing the Energy and Natural Gas Law no. 123/2012. Bolojan emphasised that these are the core projects needed to meet PNRR milestones and that their parliamentary approval is required by the commitments Romania made after 2021.

Over 4.5 billion euros for infrastructure and public services

Bolojan warned that the country still has access to more than 4.5 billion euros in non-reimbursable PNRR funds, but the money hinges on adopting the reform laws. The funds are earmarked for highways and railways, new hospitals and school modernisation, energy investments and the thermal insulation of apartment blocks. The acting prime minister stressed that these investments would develop economically connected regions, guarantee European standards in health and education, and improve quality of life in many communities.

The over 4.5 billion euros in non-reimbursable funds that we still have at our disposal if we adopt the laws are the money for highways and railways, for new hospitals and modernising schools, for energy investments or insulated housing blocks.

Difficulty postponed, responsibility evaded

Bolojan acknowledged that the easier targets and milestones had been met, while harder or politically sensitive ones were repeatedly delayed. He pointed out that the authorities responsible for pushing them forward had avoided assuming responsibility. The underlying message was directed at the PSD, which had signalled it might not vote for some of the government-backed bills, including the public pay law.

Those that are difficult or can be politically exploited have been postponed. Those who should have promoted them hesitated to assume responsibility.

Risk to borrowing costs and investor confidence

Beyond the immediate investment pipeline, Bolojan painted a broader economic picture: European funds represent about 1% of gross domestic product and finance a significant share of this year’s investments. Without the confidence that comes from fulfilling PNRR commitments, rating agencies and international investors could lose faith, driving up borrowing costs for the state, businesses and citizens alike. He noted that Romania will continue to need loans in the coming years and can only secure financing at reasonable rates by maintaining or improving its country rating. The warning came a few days after Grindeanu told Bolojan not to order parliament to vote on something that was the executive’s responsibility.