PNRR, reconfigured: Bolojan sends projects to Anghel Saligny and PNDL, PSD opposes

The Ilie Bolojan government is in the middle of a political and administrative crisis generated by the controversial draft emergency ordinance regarding the suspension of PNRR projects without secured funding. The mayors' revolt, the negative reactions from the coalition and the lack of consensus between the ruling parties have forced the postponement of the adoption of the EGO. The stakes are huge: Romania is facing a massive over-contracting of PNRR funds, estimated for some components at almost 100%, given that the total available budget is no longer 28 billion euros, but only 16 billion euros in grants and another 5 billion euros in loans.

The project's substantiation note warns of a "systemic, imminent and exceptionally serious fiscal risk", determined by co-financing obligations, VAT and the coverage of ineligible expenses from the state budget. In that document, the government proposes the following measures:

" - Unilateral termination by the reform and/or investment coordinators, the implementation agencies and those responsible for implementing specific local investments of the contracts/decisions/financing orders financed from the PNRR, within which there are no procedures for awarding procurement contracts initiated by the beneficiaries and/or the implementation structures, as well as for public procurement procedures for which the stage of communication of the result of the public procurement procedure has not been completed on the date of entry into force of this emergency ordinance;

- unilateral suspension, until December 31, 2026, by notification, by the reform and/or investment coordinators, the implementation agencies, the implementation structures and those responsible for implementing specific local investments of the contracts/decisions/financing orders financed from the PNRR within which the preparatory stages relating to the development of feasibility studies and/or obtaining approvals and authorizations, the works procurement procedures have been completed, and within the framework of the concluded procurement contracts/framework agreements, the orders to start the execution works have not been issued;

- establishing an obligation to obtain the Government's approval through a memorandum initiated by the coordinator of reforms and/or investments regarding the opportunity to continue the investment and the total budgetary impact approved by the Ministry of Finance and the Ministry of Investments and European Projects for the continuation of the contracts/decisions/financing orders financed from the PNRR within which the physical progress of the investment objective, certified by work reports, is less than 30%;

- in the event that the physical progress of the investment objective, certified by work reports, is greater than 30%, the continuation of the implementation will be carried out only under the conditions that the completion of the objective according to the assumed work schedule is prior to August 31, 2026, based on an opinion issued by the Ministry of Investments and European Projects at the request of the reform and/or investment coordinator;

- establishing exceptions through which new legal commitments can be concluded and the implementation of financing contracts/decisions/orders continued in order to streamline and accelerate the implementation of investments, as well as to achieve the milestones and targets that are the subject of renegotiation in the National Recovery and Resilience Plan, respectively by memorandum initiated by the main credit authorizing officers with the role of reform and/or investment coordinators, with the approval of the Ministry of Investments and European Projects;

- regulating the prohibition of making transfers of public funds related to the PNRR for projects that are the subject of information from the European Commission regarding non-compliance with Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC;

- regulating for 2025 the method of concluding new legal commitments for new investment projects financed through the National Local Development Program stage I and stage II, the Anghel Saligny National Investment Program and the National Program for Construction of Public or Social Interest, starting with the date of entry into force of this emergency ordinance, as well as the award of new service contracts, works execution contracts, related to investment projects financed from public funds, by the National Investment Company CNI - SA".

• Inefficient measure in the conditions of underfinancing of the Anghel Saligny and PNDL programs

The last measure above practically represents a new strategy of the Bolojan government, namely to move the PNRR projects that cannot be completed by August 31, 2026 to the Anghel Saligny and PNDL programs. However, that strategy raises questions, given that the Executive has stated that there is no more money for the two programs, that no new contracts will be concluded this year, that those currently in execution will be phased and paid in installments. Under these conditions, it is obvious that the last measure included in the draft GEO regarding the projects in the PNRR will not be implemented, especially since the government claims that the normative act is necessary to stop the budgetary waste generated by the excessive awarding of projects in election years, especially in 2024.

The PSD reacted firmly to the measures included in the draft normative act, accusing the lack of the opinion of its ministers and demanding a review of the ordinance. The Social Democrats state that they will decide on Monday, August 18, to modify this project by introducing clear and objective criteria regarding the suspension of projects and reject the idea that investments at an advanced stage should be blocked by an arbitrary decision. In addition, PSD reaffirms that no major measure can be adopted without political consensus within the coalition, underlining the importance of consulting with local elected representatives, who represent over half of the communities in Romania.

The dispute is not just a point-by-point conflict over an emergency ordinance, but a battle for control over how Romania manages European funds, respects its PNRR deadlines and avoids losing billions of euros essential for infrastructure development. In a context of high budget deficit and severe financial constraints, the way the coalition will resolve this crisis will decisively influence the government's credibility and the country's ability to meet its assumed objectives before the European Commission.