Romania is likely to lose out on 770 million euros in EU funds
esmaspäev, 31. august 2026 09:37
Romania is set to lose €770mn in EU Covid-19 recovery funds after a government crisis stopped Bucharest from passing reform laws by an August 31 deadline, the Financial Times reported.
The European Commission required Romania to adopt reforms to public-sector pay and lossmaking state companies before approving the funds, which are available only until the end of this year. The Social Democrats opposed the bills and pulled out of the ruling coalition in May.
Romania’s main parties have been unable to agree on a new prime minister since liberal premier Ilie Bolojan was ousted in May. Siegfried Mureșan, the centre-right’s preferred candidate for the premiership, called the impasse a “political truth test” and said: “The public sector pay law reform would correct inequalities, curb politically allocated privileges and unlock €770mn.”
The Social Democrats said the reforms were too austere and argued that Bolojan should have negotiated a better deal with the European Commission. The proposed overhauls also targeted patronage networks in public administration and state-owned companies, where jobs, board seats and subsidies remain political currency decades after the fall of Communism.
Romania’s state-owned companies are inefficient and carry billions of euros in debt. CFR, the state railway operator and the largest of them, said in July that it expected to lose about €100mn this year, while deputy prime minister Oana-Clara Gheorghiu said in April that “maintaining the status quo at these companies, without any reform [created] black holes for Romania’s economy.”
President Nicușor Dan has said he would appoint another prime minister only if the candidate had enough support to pass a confidence vote. Analysts said the most likely outcome is a minority cabinet or a fragile majority, while the far-right AUR party is polling at 35-40 per cent.
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