Romania submits €2.84 billion PNRR payment request #5, reaching 78% grant absorption

Submission of payment request #5

Romania officially submitted its fifth payment request under the National Recovery and Resilience Plan (PNRR) on Friday evening at 20:00, with a total value of 2.84 billion euros. The announcement was made by Dragoș Pîslaru, interim minister of Investments and European Projects, in a Facebook post on Saturday, 15 August. The request comprises 75 targets and milestones, broken down into 21 reforms and 54 investments. It is the penultimate payment request foreseen under the PNRR framework, which finances Romania's recovery with a total of 21.41 billion euros.

In net terms, the request cumulates 1.65 billion euros in non-reimbursable European grants and 433 million euros in the loan component. The overall PNRR allocation for Romania consists of 13.57 billion euros in grants and 7.84 billion euros in loans. Pîslaru had stated on Friday that Romania was prepared to transmit the request and that it was estimated to be a "clean" submission, following the model of payment request #4, described as the largest request approved for Romania so far.

Absorption progress

Pîslaru stated that with this submission, Romania reaches 78% absorption on the grant side. He contrasted this with the situation when the current team took over last year, when absorption stood at 47%, a level accumulated over four and a half years.

With this submission, we reach 78% absorption on the grant side. When we took over the mandate, last year, we were at 47% -- accumulated over four and a half years.

The minister noted that in just over a year, under the Bolojan government, 31 percentage points were added to the absorption rate, and Romania preserved the full grant allocation of 13.57 billion euros. After payment request #5, the total grants attracted by Romania would reach approximately 10.6 billion euros out of the 13.57 billion euro total.

Wage law as next milestone

Following the submission, Pîslaru went to the Ministry of Labor, where he also serves as interim minister, and worked with the team until past midnight on the draft of the new unitary wage law. The adoption of this law represents a milestone assumed by Romania through the PNRR, and its completion is necessary to unlock a tranche of 770 million euros.

After the payment request was transmitted by colleagues at the Ministry of Investments and European Projects (whom I thank again), I went to the Ministry of Labor, where I stayed until past midnight with the team to work on the unitary wage law project. I also thank the colleagues at the Ministry of Labor.

The wage law is described by Pîslaru as the next important file after the submission of payment request #5, with work continuing at the Ministry of Labor on the project.

Remaining request and response to critics

After payment request #5, Romania has one remaining request to submit under the PNRR. According to data presented by the minister on Friday, the final request, number 6, will have a component of 2.58 billion euros in grants and 1.76 billion euros in loans.

Pîslaru also used Saturday's message to respond to critics regarding the pace of PNRR implementation.

In our politics, it is easy to tear down, to criticize, to hurl insults. It is hard, however, to build and to work honestly for the good of your country.