PNRR: Government suspends funding and terminates contracts without real progress

The suspension of the signing of new contracts and financing agreements from the PNRR until the European Commission approves the renegotiated version of the plan, as well as the termination or suspension of existing contracts that have not exceeded the maturity threshold in execution, are the main measures of the emergency ordinance adopted yesterday by the Bologna government. The regulatory act introduces a complex set of rules, among which the Government's conditioning of the continuation of projects on the physical stage of completion is noteworthy. In practice, only those investments with definite progress of over 30% and with a guarantee of compliance with the deadline for completion of the works, i.e. August 31, 2026, will continue to receive financing from the funds allocated through the National Recovery and Resilience Plan (PNRR), while the rest will require additional approvals through government memoranda.

Through the new regulatory act, the Executive establishes a centralized and rigorous control over the spending of public money, and local and central authorities are obliged to align their investments with national priorities, avoiding overcontracting and the accumulation of unsustainable budgetary pressures.

The Minister of Investments and European Projects, Dragoş Pîslaru, stated: "In this emergency ordinance, we have, for the first time, a clear definition of the works that remain in the PNRR. Within 15 days of its publication in the Official Gazette, each ministry must submit the list of projects with progress below 30%, but which can be completed on time, with all the necessary details: the total cost, the non-reimbursable component, VAT, the schedule of works until August 31, 2026, the risks of non-implementation and how they meet the assumed milestones and targets. It is the last opportunity for ministries to say which projects they want to keep in the PNRR, so that we can focus on them. We will have, for the first time, for each ministry, the full list of projects that fall within the financial envelopes and, finally, a public dashboard in September, so that anyone can see which projects will continue. This emergency ordinance is a step forward for transparency and good management of public money. We are clearly establishing how much money remains available together with the European Commission, and based on these funds we will select viable projects, so that the 28.5 billion euros committed through the PNRR are implemented. (..) In parallel, MIPE will identify alternative sources of financing for projects that cannot be completed by August 31, 2026 or that no longer fit within the budget ceiling, so that useful investments are not lost. It is important to note that we are not terminating work contracts or closing construction sites - what we are doing is establishing the correct source of financing for each project. A new emergency ordinance is also coming, through which we will clarify financial flows, including for local authority projects and for the creation of a project reserve for the PNRR”.

Some of the measures approved by the new emergency ordinance also refer to the temporary blocking of programs financed from the Environment Fund, except for those considered essential, such as improving the efficiency of public lighting, the energy rehabilitation of public buildings, stimulating afforestation or supporting non-polluting transport, while the launch of strategic projects with international impact, such as the sports infrastructure for the 2027 European Youth Olympic Festival, is also maintained.

All these decisions, although restrictive, aim, according to Prime Minister Ilie Bolojan, to protect Romania's macroeconomic stability, restore financial discipline and reorient investments towards truly sustainable areas and in line with the green and digital transition objectives.