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As a Member of the European Union, Romania participates in all EU programmes and accesses direct funds for key projects in programmes like Erasmus Plus, Horizon Europe, CERV, and Life, among others. In addition to these standard opportunities open to all EU countries, Romania benefits from specific agreements under the Cohesion Policy.

The EU Commission and Romania signed their Partnership Agreement in July 2022. This agreement sets a strategic framework for Romania’s use of EU funds, totalling €31.5 billion, aimed at fostering economic, social, and territorial cohesion and facilitating the green and digital transition. The funds allocated to Romania support a wide range of objectives, focusing on increasing economic competitiveness and digitalisation, advancing the green transition, modernising the healthcare system, and promoting sustainable transport and social inclusion.
Even though Romania’s Cohesion Policy framework has the potential to bring substantial benefits, Romania has historically struggled to fully absorb available EU funds due to bureaucratic inefficiencies, slow project implementation, and sometimes a lack of capacity in local and national authorities. While private sector projects often absorb EU funds efficiently, public infrastructure initiatives, particularly those involving large-scale infrastructure projects, face delays that hinder the country’s ability to use the funds effectively.

One of Romania’s main challenges has been the slow start to the 2021-2027 financial cycle. There was a more than one-year delay in finalising agreements and accrediting the necessary structures to manage the funds. These delays have caused a backlog, with some projects still pending from 2014-2020.
Recent developments, such as cancelling Romania’s elections, bring additional uncertainty to the already complex situation. A stable political environment is critical for maintaining the momentum needed to execute projects and utilise EU funds effectively. Political infighting, leadership changes, or delays in appointing key officials could slow down administrative processes, hinder decision-making, and disrupt the allocation of resources. Indeed, timelines regulate the use of the allocated funds, and failure to meet these deadlines or implement agreed-upon projects (even after many readjustments) may result in financial penalties or the reallocation of funds to other EU States.

In conclusion, Romania’s success in utilising EU funds depends on a stable political climate and efficient governance. These are necessary for the country to capitalise on the substantial financial support available from the EU, potentially missing out on opportunities for growth, development, and modernisation in key sectors such as infrastructure, green energy, and digital transformation.

The political situation will undoubtedly play a significant role in determining Romania’s ability to unlock the full potential of EU funding in the coming years.

Written by: Cristina Ceccarelli