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[POLITICS] · Romania · 23 sources

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Romania to lose 770 million euros in EU funds over salary law deadlock FAST-MOVING

Romania faces the loss of 770 million euros in National Recovery and Resilience Plan (PNRR) funds following the failure of political parties to reach a consensus on a new salary law. President Nicușor Dan announced that the PSD, PNL, USR, and UDMR parties have collectively accepted responsibility for missing the August 31 deadline, which was a required milestone for the EU funds.

Political leaders have traded accusations regarding the failure. Interim Prime Minister Ilie Bolojan (PNL) accused the PSD of irresponsible and populist behavior, claiming the party sabotaged the law to maintain a system of privileges. Conversely, PSD leader Sorin Grindeanu argued that the government failed to produce a high-quality, equitable law and criticized the interim administration for lacking dialogue with affected sectors.

Despite the immediate loss of the 770 million euro tranche, the political parties have committed to attempting to adopt the salary law by the end of the year. The legislation aims to reform the public sector wage system while remaining within the budgetary envelopes agreed upon with the European Commission. However, labor unions have expressed concerns that the draft remains flawed and fails to address systemic inequities.

Entities

European Commission · Ilie Bolojan · National Integrity Agency · National Recovery and Resilience Plan · Nicușor Dan · PNRR · PSD · Romania · Sorin Grindeanu · Traian Băsescu

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