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[INTERNATIONAL] · Romania, EU · 12 sources

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Romania faces EU financial penalties over decarbonisation law amendments

The European Commission has issued a warning to Romania following legislative amendments to its decarbonisation law, adopted by Parliament on 5 August 2026. The changes, supported by the Social Democratic Party (PSD) and the Alliance for the Union of Romanians (AUR), aim to delay the decommissioning of lignite and coal-fired power plants until low-carbon replacements are operational.

These amendments jeopardize Romania's compliance with specific requirements of the National Recovery and Resilience Plan (PNRR), specifically Milestone 114 and Milestone 119a, the latter of which is tied to a €771 million grant. The Commission indicated that such revisions could result in the suspension of future payments or the retroactive recovery of previously disbursed funds.

While Romanian officials, including Interim Prime Minister Ilie Bolojan, expressed concerns regarding energy security and potential financial corrections, the European Commission maintained that there is currently no immediate risk to Romania's electricity supply. The Commission noted that studies regarding the adequacy of the energy supply did not demonstrate that meeting decarbonisation targets would endanger security, and expressed concern that the implementation period for the PNRR is nearing its end on 31 August 2026.

Entities

Dragoș Pîslaru · ENTSO‑E · European Commission · Ilie Bolojan · National Recovery and Resilience Plan (PNRR) · Romania · Romanian Parliament · Siegfried Mureșan · Social Democratic Party (PSD)

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