Preliminary assessment of the fourth payment request of Romania

esources and amending and supplementing certain legislative acts (Lege privind stabilirea unor măsuri de redresare și eficientizare a resurselor publice și pentru modificarea și completarea unor acte normative, hereinafter referred to as “Law 2” (Evidence No. 3), was published in the Official Journal, No. 1160 on 15 December 2025, and entered into force on 1 January 2026 (according to the provisions of Article 4(2) of the Law No. 227/2015 approving the Fiscal Code stipulating that any amendments to the tax rates will enter into force at the beginning of next fiscal year after their approval). Article 1(43) of Law 2 amends Article 470(2) of Law No. 207/2015 by introducing an ownership tax for passenger vehicles based on engine capacity and EURO pollution norm. For a given engine capacity, the ownership tax in RON/200 cm3 for passenger vehicles - including motorcycles, tricycles, cars, buses, coaches, minibuses – falling within EURO norm 0 to III is subject to the highest level of taxation. The ownership tax decreases progressively for vehicles complying with EURO 4, EURO 5, EURO 6 standards and is lowest for hybrid vehicles. The latter category has to pay around 20% less than the first category. The tax is calculated based on a two-dimensional matrix, with engine capacity as rows and emission standards as columns. Moreover, Article 1(45) of Law 2 amends Article 470(3) of Law No. 207/2015 by providing that for hybrid vehicles with CO2 emission of 50 g/km or less, the tax is further reduced. The exact amount of the extra reduction - compared to the tax for hybrids with CO2 emission above 50g/km - is up to 30%, subject to a decision of the relevant local council or, in the case of Bucharest, the General Council of the Municipality of Bucharest. Finally, Article 1(47) of Law 2 introduces a new sub-paragraph to Article 470(3) of Law No. 207/2015, providing that electric vehicles are subject to a flat ownership tax of RON 40 (approximately EUR 8), representing the lowest ownership tax applicable across all vehicle categories. iii. The new charging system for vehicles shall include: - specific level of distance-based charges and clear criteria linked to air pollution for charging heavy duty 34 As explained in point i, the system introduces distance-based charges in RON/km, with clear criteria linking them to air pollution, notably through variation in taxation based on the EURO emission norm. The Commission considers that there is a clerical error in the text of the Council Implementing Decision as regards the description of milestone 59 and has undertaken the assessment on a revised basis. In such description, it is stated that “The new charging system for vehicles shall include - specific level of distance-based charges and clear criteria linked to air pollution for charging heavy duty […]”. However, both the name of the milestone and the measure description indicate that the milestone concerns the entry into force of legal acts for the implementation of a new distance-based charging system for heavy duty vehicles (trucks). The reference to heavy duty vehicles (trucks) is therefore the one considered relevant for the fulfilment of milestone 59. Against this background, the justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of the milestone. iv. - using revenues to support road maintenance and new investment in sustainable transport Article 20(3) of Law 1 establishes that the revenues collected through the new charging system will be used for the design, repair, administration, maintenance, operation and modernisation of roads of national interest as well as investments in sustainable transport. v. timetable for the charging system to start collecting revenues no later than July 1, 2026 Article 29(1) of Law 1 contains the timetable for the application of the new charging system. It had initially established 1 January 2026 as the start for the application of the new charging system, namely the date from which the system would start collecting revenues. The Sole article of Ordinance No. 14/2025 for the extension of time limits provided for by Law No. 226/2023 on the application of road charges on the Romanian network of national roads (Ordonanță pentru prorogarea unor termene prevăzute de Legea nr. 226/2023 privind aplicarea unor tarife rutiere pe rețeaua de drumuri naționale din România), published in the Official Journal No. 784 on 22 August 2026 (Evidence No. 5) amends Article 29(1) by postponing the start of the system to 1 July 2026. The Ordinance was then converted into law with Law No. 14/2026 published in the Official Journal No. 27 on 15 January 2026 and entered into force three days after publication, in accordance with Article 78 of the Romanian Constitution, as Law 14/2026 does not contain a specific entry into force date. 4. Commission Preliminary Assessment: Satisfactorily fulfilled. 35 Number and name of the Milestone: RO-C[C4]-R[R1.0]-M[60] Entry into force of the legal act(s) to boost the use of clean vehicles and fleet renewal programmes Related Measure: RO-C[C4]-R[R1.0] Sustainable transport, decarbonisation and road safety Qualitative Indicator: Provision in the legal act(s) indicating the entry into force of the legal act(s) to boost the use of clean vehicles and fleet renewal programmes Time: Q2 2024 1. Context: The objective of the reform is to support the transition towards sustainable and smart mobility by reforming the transport system in Romania. Milestone 60 is related to the entry into force of legal acts providing financial and fiscal incentives to increase zero-emission vehicles and scrap polluting vehicles (EURO 3 or below). Milestone 60 is the fifth milestone of the reform, and follows the completion of milestone 69, milestone 65, milestone 66, related to the adoption of road safety legislation, adoption of the railway infrastructure strategy (which were positively assessed as part of the second payment request) and of milestone 59 concerning the legal acts for the implementation of a new distance- based charging system for heavy duty vehicles linked to air pollution, and higher ownership taxes for most polluting passengers vehicles (included in the fourth payment request). This milestone will be followed by targets 61 and 62, related to increasing the share of clean vehicles procured by contracting authorities and, scrapping of polluting vehicles (EURO 3 or below) as well as increasing the number of zero-emission vehicles overall, respectively. 2. Evidence provided: Name of the evidence Short description 1 Cover note Summary document duly justifying how the milestone (including all the constitutive elements) was satisfactorily fulfilled. 2 Copy of the Ministerial Order No. The Ministerial Order approved the RABLA 323/2020 approving the Financing PLUS Programme that provided non- Guide for the Programme on reducing reimbursable support in the form of eco-label, greenhouse gas emissions in transport for the purchase of new electric vehicles or by promoting clean and energy- new hybrid electric vehicles, in exchange for efficient road transport vehicles, 2020- the scrapping of old vehicles. 2024, published in the Official Journal, The Ministerial Order entered into force on 3 No. 174/2020, Part I, and entered into March 2020 in accordance with Article 12(3) of force on 3 March 2020 - with Law 24/2000 on the rules of legislative subsequent amendments. technique for the drafting of legislative acts). The order was amended by the following 36  normative acts: Order No. 934/2020, Order No. 1347/2020, Order No. 1867/2020, Order No. 110/2021, Order No. 675/2021, Order No. 909/2021, Order No. 179/2022, Order No. 783/2023, Order No. 598/2024, Order No. 2492/2024. 3 Copy of the Ministerial Order No. The Ministerial Order approved the RABLA 324/2020 approving the Financing Programme that provided non-reimbursable Guide for the Programme to stimulate financing in the form of a scrappage bonus for the renewal of the national vehicle the purchase of new/ less polluting vehicles in fleet 2020-2024, published in the exchange for scrapping old vehicles. Official Journal No. 175/2020, Part I, The order was amended by the following and entered into force on 3 March normative acts: Order No. 934/2020, Order No. 2020 - with subsequent amendments. 1347/2020, Order No. 2048/2020, Order No. 110/2021, Order No. 676/2021, Order No. 908/2021, Order No. 1470/2021, Order No. 180/2022, Order No. 784/2023, Order No. 597/2024, Order No. 2491/2024. 4 Copy of the Ministerial Order No. The Ministerial Order offered support and 2261/2022 approving the Financing incentives to the scrapping of old-polluting Guide of the Programme regarding on vehicles older than 15 years old. the scrapping of used vehicles, The order was amended by the Order No. published in the Official Journal No. 864/2023. 832/2022, Part I, and entered into force on 24 August 2022 – with subsequent amendments. 5 Copy of Ministerial Order No. The Ministerial Order replaces the Ministerial 1231/2025 for the approval of the Order No.323/2020 and aims to grant non- Financing Guide of the Programme on repayable subsidies/de minimis aid from the the reduction of greenhouse gas Environment Fund, in the form of eco-labels, emissions in transport, by promoting for the purchase of new vehicles in exchange non-polluting and energy-efficient for the scrapping and deregistration of used road transport vehicles 2025-2030, vehicles. published in the Official Journal No. 364/2025, Part I, and entered into force on 24 April 2025. 6 Copy of Local Council Decision No. The Decision approves the free use of public 370/2024 regarding the repeal of parking lots of general utility in Bucharest by paragraph (2) of art. 2 of the Decision the owners of electric and hybrid cars of the General Council of the registered Bucharest. Municipality of Bucharest No. 706/22 December 2022 on the free use of public parking lots of general utility on the territory of the Municipality of Bucharest by the owners of electric and hybrid cars registered in the Municipality of Bucharest, as well as on the repeal of the Decision of the 37  General Council of the Municipality of Bucharest No. 140/26 May 2016 on the free use of public parking lots of general utility on the territory of the Municipality of Bucharest by hybrid and electric cars registered in the Municipality of Bucharest, as well as on the approval of the identification sticker model. This Decision was adopted on 20 December 2024. 7 Copy of Local Decision No. 196/2025 The decision includes provisions on exemptions amending and supplementing the from parking fees for electric vehicles with Decision of the Local Council of Tulcea green registration plates within the Tulcea Municipality No. 122/31 May 2022 Municipality. regarding the approval of the regulation on the organization and operation of public paid parking and residence parking in Tulcea Municipality, amended and supplemented by Decision of the Local Council of Tulcea Municipality No. 78/30 March 2023 and by Decision of the Local Council of Tulcea Municipality No. 306/28 November 2023. The Decision No. 196/2025 entered into force on 27 August 2025. 8 Copy of Local Council Decision No. 40/ According to Annex 3 of the decision, electric 2022 with Annex 3 approving the powered and other zero emission powered Regulation on the organization and vehicles (example: hydrogen) are exempted functioning of the public service for from parking fee within the Municipality of the administration, maintenance and Piatra-Neamţ. operation of paid public parking lots as well as the blocking, lifting, transport, storage and release of vehicles that are parked or stopped illegally on public and private property of the Municipality of Piatra-Neamţ. 9 Copy of Local Council Decision No. The decision grants a tax exemption for public 548/2022 to amend and supplement parking for hybrid and electric vehicles within LCD No. 123/2021 on the approval of the Municipality of Constanța. the Regulation on the organization and operation of public parking lots in the Municipality of Constanța. 10 Copy of Local Council Decision No. The decision stipulates that the owners of 17/2021 on supplementing the electric vehicles can park free of charge in the Regulation on the organization and public parking lots for the first two hours and in functioning of the public parking the residential parking lots of Buzău. management system on the public 38  domain of Buzău municipality approved by Local Council Decision No. 49/6 March 2019. It was adopted on 27 January 2021. 11 Copy of Local Council Decision No. The decision stipulates that the owners of 454/2021 on supplementing the electric vehicles have free access to every Regulation for the establishment, parking lot of Ploiești. organization and operation of paid public parking lots located on the public and private domain of the municipality of Ploiești, approved by the Decision of the Local Council of the municipality of Ploiești No. 263 of 26 July 2013, with subsequent amendments and supplements. 12 Copy of Local Council Decision No. The decision mentions that paid parking lots in 252/2023 amending and Focșani Municipality will be used for electric supplementing the Regulation on the cars without paying the parking fees. organization and functioning of the public service for the administration, maintenance and operation of parking lots belonging to the public and private domain of Focsani Municipality, approved by Local Council Decision No. 276/11 October 2021, with subsequent amendments and supplements. 13 Copy of Local Council Decision No. The decision adds an extra area of the city 236/2025 on amending and where the owners of electric vehicles can use supplementing the Regulation on the the parking lots free of charge. organization and operation of paid public parking lots in Alba Iulia Municipality approved by Local Council Decision No. 235/2019, with subsequent amendments and supplements. It was adopted on 15 September 2025. 14 Copy of Local Council Decision No. The decision mentions that “Electric powered 20/2022 approving the Annex vehicle” can receive a free subscription for containing the Regulation of the using the parking lots located in three areas of operation of the vehicle parking Timisoara free of charge between 8:00 AM and system in the Municipality of 8:00 PM or 8:00 AM and 5:00 PM. Timişoara. It was adopted on 31 March 2022. 15 Copy of the Law No. 239 of 15 The Law amends the Fiscal Code (Law No. December 2025 establishing measures 227/2015) and introduces a new taxation to recover and streamline public system for cars ownership combining engine resources and for amending and capacity with polluting norm of the vehicles. 39  supplementing certain normative acts, published in the Official Journal, No. 1160 of 15 December 2025, Part I, and entered into force on 1 January 2026. 3. Analysis: The justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of the milestone. Entry into force of the legal act(s) to