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

roenterprises after Q4 2024. Whilst this constitutes a minimal temporal deviation from the requirement of the Council Implementing Decision, the delay between the EN 8 EN  adoption of the Government Emergency Ordinance and the entry into force of the provisions of Article LXIV of this Government Emergency Ordinance are considered both limited and proportional. In particular, the delay in application of the reduced eligibility threshold to 1 January 2026 allows for a gradual and predictable reduction of the scope of the special tax regime of micro-enterprises, in line with the World Bank's suggestion to implement the reduction in a staged manner. This approach, in turn, allows entities that will no longer be eligible for the special tax regime sufficient time to prepare for the change in their status and be ready to comply with the obligations of the Corporate Income Tax regime, which is substantially more complex. The complexity of the newly applicable tax regime, coupled with the large number of entities concerned by the reform (according to the World Bank report, 95% of legal entities fell under the micro-enterprise regime before the reform), necessitates and warrants a delayed application of the relevant legal provisions, allowing for sufficient time to adapt and ensure a smooth transition. This approach also mitigates the risks of disruptions and difficulties for the affected entities and avoids undermining the overall objective of the measure, which is to ensure that the tax system better promotes sustainable economic growth. 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. (31) Target 221 provides for at least 600 000 cash registers connected to the National Agency for Fiscal Administration IT system. Romania provided a list of 632 538 connected cash registers, on the basis of which a sampling exercise was carried out. Each cash register in the sample fulfils 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. (32) Target 222 provides for the increase by 30% of the share of the number of documentary audits reported on the total audits carried out by the tax administration. The evidence provided by Romania demonstrates that 40.64% of the total audits conducted were documentary audits. In addition, two orders of ANAF’s President established the powers of the tax authorities to carry out documentary checks by tax inspection bodies, antifraud control bodies and bodies responsible for verifying personal tax situations, and approved the model and content of the forms and documents used in the desk-audit activities. On the basis of the due justification provided, the target should be considered as satisfactorily fulfilled. (33) Target 230 provides for upgraded hardware and software infrastructure used by the Custom Administration. The evidence provided by Romania demonstrates that the IT infrastructure has been upgraded through hardware and software investments, which provide the necessary support for the overall operation of the custom IT system. On the basis of the due justification provided, the target should be considered as satisfactorily fulfilled. (34) Milestone 241 provides for the entry into force of legislative amendments to streamline, simplify and fully digitise business related procedures by 30 September 2022. The evidence provided by Romania demonstrates that the majority of the legislative amendments to streamline, simplify and fully digitise business related procedures, which contain the elements required in the Council Implementing Decision, entered into force by 30 September 2022. Selected amendments entered into force after 30 September 2022. In particular, Law. No. 265/2022 was published in the Official Journal before 30 September 2022, but it entered into force after 30 September 2022, constituting a minimal substantive deviation from the requirement of EN 9 EN  the Council Implementing Decision. In addition, Order No. 1994/880/1181/4594/2023 was published in the Official Journal and entered into force after 30 September 2022, constituting a minimal substantive deviation from the requirement of the Council Implementing Decision. However, these delays are considered both limited and proportional. Notably, the majority of the legislative amendments to streamline, simplify and fully digitise business related procedures, introduced by Government Ordinance No. 18/2022, Government Emergency Ordinance No. 36/2021, which was amended and approved by Law No. 208/2021, and Law No. 144/2022, entered into force by 30 September 2022. In addition, the beginning of the legal effects of Law No. 265/2022 and Order No. 1994/880/1181/4594/2023 has taken place by the time of the Commission assessment. 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. (35) Milestone 242 provides for the entry into force of legislative amendments to simplify and make the conduct of the SME test transparent and applicable. The evidence provided by Romania demonstrates the entry into force of legislation to simplify and make the conduct of the SME test transparent and applicable. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (36) Milestone 243 provides the entry into force of the “Single industrial license” law. The evidence provided by Romania demonstrates the entry into force of the law, which enforces, among others, the tacit approval (silence is consent) for specific types of licenses, the adoption of the 'once-only' principle – requiring firms to provide the same information or documents to public institutions only once – and the necessary legislative amendments for the full implementation of an Electronic Point of Single Contact, including a definition of its main features. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (37) Milestone 264 provides for the selection of a scheme administrator to implement the de minimis scheme to assist Romanian companies in listing on the stock exchange (launching the call, assessing contracting and monitoring projects). The evidence provided by Romania demonstrates the selection of the scheme manager, the communication of the selection, the conditions for granting the support, and compliance with the DNSH principles. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (38) Target 268 provides for at least three Romanian entities to participate as members of consortia in call for projects by the Joint Undertaking of Essential Digital Technologies (KDT JU). The evidence provided by Romania demonstrates that three participants were selected and contributed, in a multinational context, to the establishment of capabilities in the field where KDT JU launched calls for project proposals, including descriptions of activities and complementarities with the Important Project of Common European Interest (IPCEI). On the basis of the due justification provided, the target should be considered as satisfactorily fulfilled. (39) Milestone 278 provides for the entry into force of legislation designed to counteract the pronounced fragmentation within Romania's research system, focusing on encouraging, facilitating, and regulating the integration of research institutions. The evidence provided by Romania demonstrates that legislation has entered into force establishing a framework for the voluntary integration of research institutions, incentivising collaborations and resource sharing; introducing structured performance assessment processes for the research institutions and linking access to funding of EN 10 EN  these institutions to the results of periodic evaluations based on international standards. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (40) Milestone 280 provides for the establishment of five centres of competence following a competitive call, to implement Horizon Europe missions at the national level. The evidence provided by Romania demonstrates that five centres of competence have been established through a competitive and transparent selection procedure, with the aim to enhance interdisciplinary collaboration, integrate public and private sector efforts and align with Horizon Europe missions. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (41) Milestone 288 provides for the entry into force of legislation in the field of sustainable urban mobility. The evidence provided by Romania demonstrates that the law on sustainable urban mobility entered into force, and is aligned with the requirements set out in the Council Implementing Decision. The Council Implementing Decision required that legislation to be developed in line with Romania’s urban policy which shall include provisions “[…] on the accessibility of the population to transport services (percentage of the population which is less than 0.5km away from a public transport line where there is a maximum frequency of 20 minutes)”. While the urban policy includes a provision on the accessibility of the population to transport services by making a reference to the 15-minute policy, the specific indicator contained in the Council Implementing Decision is included in Article 21 (d) of the Law, which establishes that “[a]t least 60% of the population is less than 500 meters away from a public transport line where the maximum frequency is 20 minutes”. Whilst this constitutes a minimal formal deviation from the requirement of the Council Implementing Decision, this deviation is acceptable because the Law, unlike the urban policy, is legally binding, therefore further ensuring progress towards the objective of the reform to improve mobility conditions. 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. (42) Milestone 289 provides for the entry into force of the Ministerial Order establishing a structure for the provision of technical assistance for the development of Sustainable Urban Mobility Plans (SUMPs) established and operational. The evidence provided by Romania demonstrates the entry into force of the Ministerial Order establishing and operationalising this structure. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (43) Milestone 294 provides for the signature of contracts for the renewal of public transport fleets (procurement of clean vehicles). Romania provided a list of 226 contracts signed, on the basis of which a sampling exercise was carried out. Each contract in the sample fulfils the requirements set out in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (44) Milestone 298 provides for the signature of contracts for the provision of intelligent transport systems and other ICT infrastructure. Romania provided a list of 1 286 contracts signed, on the basis of which a sampling exercise was carried out. Each contract in the sample fulfils the requirements set out in the Council Implementing Decision. The Commission considers that there is a clerical error in the text of the EN 11 EN  Council Implementing Decision as regards the action listed in the milestone description and has undertaken the assessment on a revised basis. In such description, it is stated that “The following actions shall be eligible under Intelligent Transport Systems (in line with intervention field 076 - Digitalisation of urban transport) […]- Charging solutions”. The action “Charging solutions” is a mistranslation of “Soluții de taxare” which is the second action in the Romanian translation of the Annex to the Council Implementing Decision. This action correctly translates to “toll solutions”, and this action is listed in the Specific Guide. In addition, the description of this milestone included in the Romanian recovery and resilience plan (RRP) lists the concerned eligible action as “toll solutions – Dynamic tolling schemes are increasingly used as an important tool for city and traffic managers to sustainably influence traffic flows inside and outside cities and reduce emissions” (translation from Romanian to English). This confirms the clerical error. Against this background, the justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of this milestone description requirement. Furthermore, The Council Implementing Decision states that “Smart City/Smart Village concept shall also be eligible in relation to technological developments (in line with intervention field 021ter Development of highly specialised support services and facilities for public administrations and businesses) such as [list of technological developments]”. Section 2 of the Specific Guide provides that urban/local intelligent management systems falling under code 021ter – Development of highly specialised support services and structures for public administrations and businesses are eligible and gives examples of eligible types of ICT infrastructure, stating that the eligible actions are “not limited to” the ones listed (page 37). While the examples listed do not include all the actions in the description of the milestone, it can be considered that both the milestone description and the Specific Guide are only citing examples of actions rather than a legally binding list of items. This is further supported by the Romanian RRP’s description of the milestone which states that “other types of ICT infrastructure that can contribute to the implementation of the Smart City/Smart Village concept will also be eligible in relation to technological development (in line with the intervention field 021ter (Development of highly specialised services and support structures for public administrations and businesses), such as: […]”. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (45) Milestone 301 provides for signature of contracts for building electric vehicle recharging points. Romania provided a list of 130 contracts signed, on the basis of which a sampling exercise was carried out. Each contract in the sample fulfils the requirements set out in the Council Implementing Decision. On the basis of the due justification provided, the milestone should be considered as satisfactorily fulfilled. (46) Milestone 308 provides for the entry into force of the Government Decision establishing the Romanian Urban Policy Framework. The evidence provided by Romania demo