European PNRR money in danger. Romania risks losing large sums due to political conflicts



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The 30 billion euros that Romania could access through the National Recovery and Resilience Plan are in jeopardy due to political conflicts between the PSD and the Coalition parties. The Social Democrats ask the Government to come to Parliament with the plan that provides projects financed with European money and threaten that, otherwise, they will block the ratification of the treaty that provides for the increase of Romania’s contribution to the European Union. Access to European funds depends on the increase in the contribution, according to political sources.

All EU Member States have agreed to increase this contribution from 1.2% to 1.4% of gross national income. It is a necessary decision to cover the funds that the European Commission will allocate for recovery and resilience. Romania would benefit from € 30.5 billion for the National Recovery and Resilience Plan.

If a state did not ratify this decision, it would create problems at the community bloc level.

Political sources claim that increasing the contribution to the European Union budget has become a subject of dispute between the PSD and the Coalition parties. Parliament must approve this increase, but as it is a treaty, the vote of 2/3 of the parliamentarians is required. Therefore, the coalition also needs the votes of the PSD.

In a discussion with Ludovic Orban, PSD President Marcel Ciolacu would have told him that if the National Recovery Plan is not presented in Parliament, the PSD will not vote to ratify Romania’s increased contribution to the EU.

The Social Democrats will consult with representatives of Europe, from the group of Socialists, they are aware of the implications, but they want to force the allocation of sums of money from the PNRR and to the projects of the administrations led by the PSD.

“It is the only option, after they distributed money to the budget only to the administrations led by the coalition parties,” say PSD sources.

On Thursday, the coalition leaders have a discussion to decide how to negotiate with PSD and if they will come to Parliament with the National Recovery and Resilience Plan.

In February, President Klaus Iohannis signed a decree increasing his contribution to the EU budget, which he sent to Parliament for approval. According to the document, the level of the contribution will be 1.4% of the Gross National Income this year, compared to 1.2%, which amounts to 2,357 million euros.

The increase is caused by the European Commission’s European Resilience and Recovery Mechanism, so each state will contribute more to the EU budget. This is a temporary increase.

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