COMMISSION IMPLEMENTING DECISION on the authorisation of the disbursement of the third instalment of the non-repayable support and the third instalment of the loan support for Romania

sidential buildings, EN 4 EN  (ii) establishing an updated list of expenditure for moderate or deep renovation eligible for support and (iii) increasing the ambition of the performance indicators for projects submitted under the programme. The Council Implementing Decision states that the amendments to the multiannual national programme for improving the energy performance of residential buildings shall increase the level of ambition of energy renovations to at least 30% primary energy savings up to 60% primary energy savings for residential building. Romania’s recovery and resilience plan provides that it “will address public and private building renovations at a moderate level for which the minimum reduction in energy consumption and CO2 emissions will be 30%” and “finances works to improve the existing building stock: multi-family residential buildings – moderate or deep energy renovation”. In light of the purposive interpretation of this requirement from the Council Implementing Decision, the requirement is interpreted as providing for the achievement of at least moderate energy efficiency renovation, with a minimum of 30% primary energy savings. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (14) Milestone 91 provides for the adoption and entry into operation of two technical guidelines, which enter into operation: “The Nearly Zero Energy Building (NZEB) guidelines” and “The methodology for non-invasive approach of energy efficiency on historical buildings”, as well as guidelines to facilitate the implementation of the Building Information Modelling. The evidence provided by Romania demonstrates that these technical guidelines and the methodology were adopted and entered into operation. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (15) Milestone 93 provides for the adoption of a National Seismic Risk Reduction Strategy. The evidence provided by Romania demonstrates that Romania adopted a National Seismic Risk Reduction Strategy (NSSRS) which defines the criteria for prioritising investments in the reduction of seismic risk for the existing building stock based on the level of seismic risk for buildings and communities and the benefits of risk reduction actions. The Council Implementing Decision required the introduction of rapid visual assessment methodology for second level of seismic risk assessment through the NSSRS by Government Decision. However, Romania has approved the introduction of rapid visual assessment methodology through Ministerial Order No. 3231/2022). According to its Article 1, the Ministerial Order approves the technical regulation “Methodology for rapid visual assessment of buildings, indicative RTC 10- 2022” (“the methodology”), which is included in Annex 1. Ministerial Order No. 3231/2022 was published in the Official Journal on 20 December 2022 and entered into force 30 days later, as provided by its Article 3. Whilst this constitutes a minimal formal deviation from the requirement of the Council Implementing Decision, in the Romanian legal system the development and approval of methodologies are done through Ministerial Orders and not Government Decisions. Furthermore, the legal framework outlining the approval of the methodology through a Ministerial Order is Article 35 of Law 212/2022 on certain measures to reduce the seismic risk of buildings, which provides that the rapid visual assessment methodology shall be approved by order of the Minister of Development, Public Works and Administration. Therefore, this deviation is acceptable, given that the approval of the methodology through the Ministerial Order follows standard internal procedures of the Member State. As of this, this minimal deviation does not affect the progress towards achieving the reform that the milestone represents and it is considered that this constitutive EN 5 EN  element of the milestone is satisfactorily fulfilled. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (16) Milestone 94 provides for the entry into force of the new law on seismic risk reduction of buildings. The evidence provided by Romania demonstrates that the law entered into force and (i) includes a multi-annual approach for retrofitting the existing building stock, (ii) introduces in the list of eligible expenses the different eligible types of works necessary to increase energy performance, (iii) extends the programme to public buildings alongside with multifamily residential buildings and (iv) introduces the second seismic class among the eligible criteria, alongside with the first seismic class. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (17) Milestone 99 provides for the signature of contracts for energy efficiency and integrated renovations of residential buildings in line with the conditions set out in the national financing scheme set up for this investment. Romania provided a list of 584 signed contracts, on the basis of which a sampling exercise was carried out. Each contract in the sample referred to the relevant financing scheme and had been signed as required by the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (18) Milestone 100 provides for the signature of contracts for energy efficiency and integrated renovation of public buildings in line with the conditions set out in the national financing scheme set up for this investment. Romania provided a list of 997 signed contracts, on the basis of which a sampling exercise was carried out. Each contract in the sample referred to the relevant financing scheme and had been signed as required by the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (19) Target 115 provides that a cumulative 2 355 MW of coal and lignite-fired installed electricity production capacity is shut down, out of which 2 025 MW is decommissioned and 330 MW mothballed, which could be activated in specific circumstances and ultimately decommissioned by 2025. The evidence provided by Romania demonstrates the shutdown of a total of 2 355 MW of coal and lignite-fired installed electricity production capacity, of which 2 025 MW have been decommissioned and 330 MW have been mothballed. A Ministerial Order specifies the rules and procedures for the reactivation of mothballed electricity generation capacity and that its conservation status runs from 1 June 2023 until 31 December 2025 at the latest. On the basis of the due justification provided, the target should be considered as satisfactorily fulfilled. (20) Milestone 127 provides for the entry into force of the legislative framework introducing measures to facilitate investment in energy efficiency in the industry. The evidence provided by Romania demonstrates that the amended legislative framework (i) created the legal framework for the implementation and conclusion of energy performance contracting; (ii) introduced monitoring of compliance with energy efficiency standards to ensure products meet eco-design requirements; (iii) enhanced SMEs' awareness of energy efficiency; (iv) created a monitoring system for the implementation of the recommendations from energy audits in the ETS; (v) introduced a green financial instruments label. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (21) Milestone 148 provides for the implementation of 12 recommendations from the EU connectivity toolbox. The evidence provided by Romania demonstrates that Romania EN 6 EN  has taken the necessary measures to implement the 12 recommendations of the EU Connectivity Toolbox. The Council Implementing Decision required that the implementation of the recommendations shall be finalised in 2022. However, certain elements of three of the recommendations contained elements which were finalised in 2023. Whilst this constitutes a minimal substantive deviation from the requirement of the Council Implementing Decision, the implementation of those recommendations was finalised at the time of the assessment. The Council Implementing Decision required that the recommendation must be implemented as per the draft roadmap. Whilst the fact that no action was taken to create a single information point (SIP) constitutes a minimal substantive deviation from the requirement of the Council Implementing Decision, the adoption of GEO No. 140/2022 ensures the availability of information from different sources and enhances the transparency of planned civil works, thereby fulfilling the objective of the recommendation. As of this, this minimal deviation does not change the nature of the measure and does not affect the progress towards achieving the reform that the milestone represents. On this basis, it is considered that this constitutive element of the milestone is satisfactorily fulfilled. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (22) Milestone 149 provides for the assignment of the rights of use of “5G” radio spectrum. Romania provided as evidence the results of the spectrum auction, which demonstrate that the authorities had assigned 5G radio frequency licenses to three winning bidders. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (23) Milestone 151 provides for the entry into force of the law on Defence and Cybersecurity of Romania to establish the legal and institutional framework for organising and conducting activities in the fields of cybersecurity and cyber defence, cooperation mechanisms and responses of institutions in the fields concerned. Romania provided a copy of this law which contains the elements required in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (24) Milestone 152 provides for the entry into force of the Ministerial Order of the Minister of Labour and the National Institute of Statistics President for the definition of new digital occupations in the Classification of Occupations. Romania provided the Ministerial Order which sets out a list of new digital occupations. Romania also provided a diagnosis strategy to provide forecasting of the labour needs in this industry for the next five years. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (25) Target 192 provides for the enrolment of additional legal person taxpayers in the Virtual Private Space (SPV). Romania provided a list of 585 199 legal persons taxpayers, and a dedicated list of 3 280 large taxpayers on the basis of which two sampling exercises were carried out. These confirmed that each legal person taxpayer in the samples meets the requirements set out in the Council Implementing Decision. On the basis of the due justification provided, the target should be considered as satisfactorily fulfilled. (26) Milestone 193 provides for the entry into force of the applicable legal framework defining the risk criteria for the classification of taxpayers. The legal framework shall be approved through an Order of the ANAF President. Romania provided a copy of this Order which contains the elements required in the Council Implementing EN 7 EN  Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (27) Milestone 194 provides for the entry into force of the amended legal framework in the field of activity of tax inspection bodies. Romania provided a copy of the Government Emergency Ordinance amending the existing legal framework in the field of activity of tax inspection bodies, which contains the elements required in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (28) Milestone 199 provides for the entry into force of the amended regulatory framework to ensure multi-annual budgetary planning for the significant public investment projects and have an ex-post evaluation of expenditure reviews made by the Fiscal Council. Romania provided a copy of Government Emergency Ordinance No. 187/2022 amending the regulatory framework as required in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (29) Milestone 205 provides for the completion of an analysis of Romania’s tax system with the objective to produce recommendations to ensure that the tax system contributes to promoting and preserving sustainable economic growth. The evidence provided by Romania demonstrates that the Ministry of Finance of Romania signed with the World Bank Group a Reimbursable Advisory Services agreement, as part of which an analysis and recommendations were developed to improve the structure of the Romanian tax system and tax legislation to ensure that the tax system contributes to promoting and preserving sustainable economic growth. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (30) Milestone 206 provides for the entry into force of amendments to the Fiscal Code gradually reducing the scope of the special tax regime for micro-enterprises. The evidence provided by Romania demonstrates that the amendments to the Fiscal Code gradually reducing the scope of the special tax regime for micro-enterprises (including Government Ordinance No. 16/2022; Law No. 370/2022; Law No. 296/2023; Government Ordinance No. 115/2023; and Government Emergency Ordinance No. 156/2024) entered into force. The Council Implementing Decision required the completion of the reduction of the special provisions by Q4 2024 as well as the implementation of the recommendations stemming from the thorough analysis provided by an independent institution to ensure that the tax system better promotes sustainable economic growth. The Romanian authorities adopted the necessary legislation to ensure a gradual reduction of the scope of the special tax regime for micro-enterprises. This progressive reduction is consistent with the World Bank’s recommendations with respect to the reduction of the turnover threshold for eligibility to the micro-enterprise regime to align it with the VAT registration threshold. In particular, Article 1 and Article 47 of Government Ordinance No. 16/2022 establishes that the reduction of the eligibility threshold to the special tax regime for micro- enterprises from EUR 1 000 000 to EUR 500 000 entered into force on 1 January 2023. Additionally, Article LXIV of Government Emergency Ordinance No. 156/2024, amending Articles 1 and 47 of Government Ordinance No. 16/2022, provides for the reduction of the eligibility threshold applicable to the special regime for micro-enterprises to EUR 100 000 as of 1 January 2026. This, however, leads to the completion of the reduction of the special provisions of the tax regime for mic