Preliminary assessment of the fourth payment request of Romania

          budgetary expenditure and tax expenditures        steps.
          for green budgeting) (to Government
          Emergency Ordinance No. 75/2024), published
          in the Official Journal No. 887 on 28 August
          2024      (hereinafter   referred     to    as
          “Methodological rules”).
5         A copy of the guidelines for budget               Guidelines for tagging the budget
          expenditure tagging and a link to the website:    expenditures in Romania published on
          mfinante.gov.ro/ro/bugetarea-verde-green-         the website of the Ministry of Finance.
          budgeting.
6         Copy of Report on the Results of Expenditure      The Report represents the final version
          Labelling Budget and Tax Expenditures.            of the tagging of fiscal and budget

                                                            expenditures, available on the dedicated
                                                            website, see Evidence No. 5.
7         Copy of Annex B (Labelling of budgetary           The Annex presents the results of the
          expenditure in terms of their impact on           budgetary expenditures tagging process
          environmental objectives) to Report on the        from the perspective of their impact on
          Results of Expenditure Labelling Budget and       environmental objectives.
          Tax Expenditures, see Evidence No. 6.
8         Copy of Annex D (Labelling of tax expenditure     The Annex presents the results of the
          in terms of their impact on environmental         fiscal expenditures tagging process from
          objectives) to Report on the Results of           the perspective of their impact on
          Expenditure Labelling Budget and Tax              environmental objectives.
          Expenditures, see Evidence No. 6.

9         List of the measures of the budgetary             The list of the measures includes the
          expenditure.                                      related costs in the 2026 budget.
10        Copy of Law No. 45/2026 amending Law No.          Law No. 45/2026 includes green budget
          69/2010 on fiscal and budgetary responsibility,   assessment measures such as climate
          published in the Official Journal on 30 March     risk analysis.
          2026 (hereinafter referred to as “Law No.
          45/2026”).

3. Analysis:

The justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of the milestone.

The authorities shall apply a methodology for assessing green budget expenditure and the impact of fiscal policy on environmentally sustainable activities, as defined under the EU Taxonomy Regulation, and the “do no significant harm” Technical Guidance (2021/C58/01). Furthermore, in line with the description of the measure, the reform consists in applying green budgetary practices to the national budget.

The methodology was developed by the Ministry of Finance and piloted in 2024, on the budgets of three ministries. It was subsequently formalised through two legislative instruments.

Government Emergency Ordinance No. 75/2024 (hereinafter referred to as “GEO No. 75/2024”) on the labelling of budgetary and tax expenditures for green budgeting (Evidence No. 2) was published in the Official Journal on 26 June 2024 and entered into force on the same date, in accordance with

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