Romanian PSD blocks salary law, endangering €770 million PNRR funding

The Social Democratic Party (PSD) has announced it will not vote for the proposed unified salary law unless it guarantees equity and respects the amendments raised by unions and other parties. PSD leaders such as Daniel Zamfir and Sorin Grindeanu warned that the current draft could cost the state an additional 8 billion lei a year and threaten the disbursement of more than €770 million from the EU‑backed National Recovery and Resilience Plan (PNRR).

Public‑sector unions, including SindFISC and the National Trade Union Bloc, have organised protests and warned of a possible general strike, arguing that the law would increase inequalities and fail to address staff shortages.

Rating agency Fitch cautioned that failure to adopt the required reforms could cause Romania to lose up to €6.5 billion of EU funds. President Nicolae Dan expressed optimism that a political compromise could still be reached, while interim Prime Minister Ilie Bolojan stressed the law’s role in correcting salary imbalances and unlocking the pledged funds.