Preliminary assessment of the third payment request of Romania (2024)

15 October 2024 Positive preliminary assessment of the satisfactory fulfilment of milestones and targets related to the third payment request submitted by Romania on 15 December 2023, transmitted to the Economic and Financial Committee by the European Commission Executive summary In accordance with Article 24(2) of Regulation (EU) 2021/241, on 15 December 2023, Romania submitted a request for payment for the third instalment of the non-repayable support and the third instalment of the loan support. The payment request was accompanied by the required management declaration and summary of audits. To support its payment request, Romania provided due justification of the satisfactory fulfilment of the 39 (thirty nine) out of the 43 (forty three) milestones and targets of the third instalment of the non-repayable support and the 29 (twenty nine) out of the 31 (thirty one) milestones and targets of the third instalment of the loan support, as set out in Section 2.1.3 and Section 2.2.3 of the Annex to the Council Implementing Decision of 29 December 2021 on the approval of the assessment of the recovery and resilience plan for Romania, as amended by Council Implementing Decision of 8 December 20231. For 12 (twelve) milestones and targets covering a large number of recipients, in addition to the summary documents and official listings provided by Romania, the Commission services have assessed a statistically significant sample of individual files. The sample size has been uniformly set at 60, with additional units for one specific case, which corresponds to a confidence level of 95% or above in all cases. In its payment request, Romania has confirmed that measures related to previously satisfactorily fulfilled milestones and targets have not been reversed. The Commission does not have evidence of the contrary. Upon receipt of the payment request, the Commission has assessed on a preliminary basis the satisfactory fulfilment of the relevant milestones and targets. Based on the information provided by Romania, the Commission has made a positive preliminary assessment of the satisfactory fulfilment of 39 milestones and targets related to the third instalment of the non-repayable support, and of 29 out of 31 milestones and targets related to the third instalment of the loan support. Romania has not currently provided the necessary information for the Commission to reach a positive preliminary assessment on milestones 72, 79, 86, 121, 206 and 440. For these milestones, the Commission will proceed in accordance with Article 24(6) of Regulation (EU) 2021/241. The milestones and targets positively assessed as part of this payment request demonstrate significant steps in the implementation of Romania’s recovery and resilience plan. They notably highlight the continuation of the reform momentum in key policy areas. This includes, among others, the reform of the compulsory education system to prevent and reduce early school leaving, the electricity market reform, the reform of the National Agency for Fiscal Administration (ANAF) through digitalisation and the public pension system reform. The milestones and targets also confirm progress towards the completion of investment projects related to improving tax and tax administration processes, improving the efficiency of the existing building stock, cross border and 1 ST 12319/21; 15833/23. multi-country projects – Low Power Processors and Semiconductor Chips, and the construction of housing for youth and for professionals in health and education. By the transmission of this positive preliminary assessment and in accordance with Article 24(4) of Regulation (EU) 2021/241, the Commission asks for the opinion of the Economic and Financial Committee on the satisfactory fulfilment of the relevant milestones and targets. Contents Contents .................................................................................................................................................. 3 [Non-repayable support]......................................................................................................................... 7 Related Measure: Reform of forest management and governance systems through the development of a new National Forest Strategy and subsequent legislation............................................................... 7 Related Measure: Reform of forest management and governance systems through the development of a new National Forest Strategy and subsequent legislation............................................................. 14 Related Measure: Sustainable transport, decarbonisation and road safety / Road safety................... 20 Related Measure: Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production ..... 27 Related Measure: Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high-capacity networks......................................................................................... 30 Related Measure: Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high capacity networks ......................................................................................... 38 Related Measure: Ensuring cybersecurity of public and private entities owning critical value infrastructure ........................................................................................................................................ 39 Related Measure: Increasing digital competence for public service and digital education throughout life for citizens ....................................................................................................................................... 41 Related Measure: Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation .......................................................................................................................................... 43 Related Measure: Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation .......................................................................................................................................... 46 Related Measure: Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation .......................................................................................................................................... 49 Related Measure: Improving the budgetary programming mechanism ............................................... 52 Related Measure: Review of the tax framework................................................................................... 56 Related Measure: Reform of the public pension system ...................................................................... 60 Related Measure: Improving tax and tax administration processes, including through the implementation of integrated risk management .................................................................................. 65 Related Measure: Improving tax and tax administration processes, including through the implementation of integrated risk management .................................................................................. 67 Related Measure: Implementation of electronic customs.................................................................... 69 Related Measure: Creating the framework for sustainable urban mobility ......................................... 71 Related Measure: Creating the framework for sustainable urban mobility ......................................... 77 Related Measure: Sustainable urban mobility ...................................................................................... 81 Related Measure: Sustainable urban mobility ...................................................................................... 84 Related Measure: Sustainable urban mobility ...................................................................................... 88 Related Measure: Increased capacity for the management of public health funds ............................. 91 Related Measure: Increased capacity for health management and human resources in health ......... 93 Related Measure: Creating a new legal framework to prevent the separation of children from their families .................................................................................................................................................. 98 Related Measure: Reform of the protection system for adults with disabilities ................................ 100 Related Measure: Reform of the protection system for adults with disabilities ................................ 104 Related Measure: Implementation of the Minimum Inclusion Income (VMI).................................... 108 Related measure: Enhancing the predictability and efficiency of decision-making processes by strengthening the capacity for policy coordination and impact analysis at the level of the government and coordinating ministries, as well as by strengthening the tools to increase the quality of public consultations at all levels of the administration ................................................................................. 110 Related Measure: Enhancing the predictability and efficiency of decision-making processes by strengthening the capacity for policy coordination and impact analysis at the level of the government and coordinating ministries, as well as by strengthening the tools to increase the quality of public consultations at all levels of the administration ................................................................................. 113 Related Measure: Enhancing the predictability and efficiency of decision-making processes by strengthening the capacity for policy coordination and impact analysis at the level of the government and coordinating ministries, as well as by strengthening the tools to increase the quality of public consultations at all levels of the administration ................................................................................. 116 Related Measure: Ensuring the independence of the judiciary, enhancing its quality and efficiency118 Related Measure: Improve the procedural framework for the implementation of corporate governance principles in state -owned enterprises ............................................................................ 120 Related measure: Increasing the capacity of civil society organisations to foster active citizenship, to engage professionally in the planning and implementation of public policies on social rights addressed by the national recovery and resilience plan and to monitor related reforms ................. 123 Related Measure: Unitary, inclusive and quality early-childhood education system ......................... 127 Related Measure: Reform of the compulsory education system to prevent and reduce early school leaving ................................................................................................................................................. 131 Related Measure: Creation of a full professional route for higher technical education ..................... 133 Related Measure: Provision of facilities for pre-university classrooms and school science laboratories/school cabinets ............................................................................................................... 142 Related Measure: Provision of facilities for pre-university classrooms and school science laboratories/school cabinets ............................................................................................................... 146 [Loan support]..................................................................................................................................... 152 Related Measure: Strengthening the regulatory framework for sustainable management of water and waste water sector and accelerating people’s access to quality services under European directives152 Related Measure: Improving waste management governance to accelerate the transition to the circular economy ................................................................................................................................. 153 Related Measure: Improving waste management governance to accelerate the transition to the circular economy ................................................................................................................................. 157 Related Measure: Simplified and updated regulatory framework to support the implementation of investments in the transition to green and resilient buildings ........................................................... 163 Related Measure: Simplified and updated regulatory framework to support the implementation of investments in the transition to green and resilient buildings ........................................................... 166 Related Measure: Strategic, legislative and procedural framework to support seismic resilience of the buildings stock..................................................................................................................................... 170 Related Measure: Strategic, legislative and procedural framework to support seismic resilience of the buildings stock..................................................................................................................................... 174 Related Measure: Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock .............................................................................................. 175 Related Measure: Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock .............................................................................................. 177 Related Measure: Reducing the energy intensity of the economy by developing a sustainable mechanism to boost energy efficiency in industry ............................................................................. 178 Related Measure: Legislative transparency, de-bureaucratisation and procedural simplification for business............................................................................................................................................... 182 Related Measure: Legislative transparency, de-bureaucratisation and procedural simplification for business............................................................................................................................................... 186 Related Measure: Legislative transparency, de-bureaucratisation and procedural simplification for business............................................................................................................................................... 190 Related Measure: Private sector aid schemes – De minimis scheme to assist Romanian firms in listing on the stock exchange......................................................................................................................... 194 Related Measure: Cross border and multi-country projects – Low Power Processors and Semiconductor Chips .......................................................................................................................... 196 Related Measure: Support to integrate the research, development and innovation organisations in Romania in the European Research Area............................................................................................ 199 Related Measure: Establishment and operationalisation of Competence Centres ............................ 202 Related Measure: Creating the policy framework for sustainable urban transformation .................. 208 Related Measure: Creating the policy framework for sustainable rural transformation: establishing administrative consortia in functional rural areas .............................................................................. 211 Related Measure: Construction of housing for youth and for professionals in health and education ............................................................................................................................................................ 215 Related Measure: Moderate rehabilitation of public buildings to improve public service delivery by administrative territorial units ............................................................................................................ 218 Related Measure: Development/updating in GIS format of spatial planning and urban planning documents .......................................................................................................................................... 221 Related Measure: Operationalisation of Destination Management Organisations (DMOs) .............. 223 Related Measure: Promotion of the 12 touristic/cultural routes ....................................................... 229 Related Measure: Framework for the operationalisation of cycling routes at national level............. 232 Related Measure: Establishment and operationalisation of the Velo National Coordination Centre 235 Related Measure: Implementation of 2 404km of cycling routes....................................................... 238 Related Measure: Reforming the funding system for the cultural sector ........................................... 240 Related Measure: Reform of long-term care services for older people ............................................. 246 [Non-repayable support] Related Measure: Reform of forest management and governance systems Number: 22 through the development of a new National Forest Strategy and subseque