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Romania May Amend Integrity Law to Protect €770 Million EU Recovery Grant

2026/09/04
in Macroeconomics

Romania’s government has indicated that it may amend the country’s new integrity legislation to ensure access to a €770 million grant under the European Union’s Recovery and Resilience Facility.

The announcement followed a request from the European Commission for clarification regarding provisions that could have retroactive consequences for locally elected officials. Although the Romanian government stressed that Brussels has neither requested nor suggested a reduction in funding, it acknowledged that failure to bring the law into line with European principles could place the payment at risk.

The disputed legislation concerns the National Integrity Agency, known as ANI, and forms part of a milestone included in Romania’s sixth and final payment request under its National Recovery and Resilience Plan.

The Commission is examining whether one of the law’s amendments complies with the principles of legal certainty and proportionality. In particular, Brussels wants Romania to explain how the legislation can formally remain non-retroactive while imposing additional consequences for integrity violations committed in the past.

The provision has become widely known as the “Fritz amendment” because it could affect Dominic Fritz, the mayor of Timișoara and president of the reformist Save Romania Union, or USR. Its application could lead to the termination of the mandates of elected officials found to have committed earlier integrity violations.

Romania’s Constitutional Court has already approved the provision affecting elected officials. However, the court’s ruling does not resolve the separate question of whether the law complies with EU legislation and the commitments Romania made under its recovery plan.

Government seeks urgent European assessment

Acting Prime Minister Ilie Bolojan and Foreign Minister Oana Țoiu have requested an urgent assessment of the law’s compatibility with European principles. The issue was discussed during a technical meeting involving European Commissioner for Justice Michael McGrath and officials from the European Commission.

The Romanian government said that any incompatibility would have to be corrected quickly to avoid “significant risks.”

“The government is taking all steps to ensure that Romania will fully collect the €770 million related to the RRF milestone regarding the new integrity legislation,” it said, adding that securing the remaining EU recovery funds continues to be a priority.

Investment and European Projects Minister Dragoș Pîslaru said Romania had asked the Commission to accelerate its assessment. An early conclusion would give Parliament enough time to amend the controversial provision if it is found to be incompatible with EU treaties.

The government’s latest position marks a noticeable shift in tone. Romanian officials had previously maintained that the new legislation fully satisfied the requirements agreed with the Commission. They are now openly acknowledging that further legislative changes may be necessary.

Funding has not yet been lost

The Commission’s request for clarification does not mean that Romania has already lost the €770 million. The payment remains dependent on whether Brussels concludes that the relevant RRF milestone has been satisfactorily completed.

If the Commission finds that the law fails to meet the agreed conditions, Romania could be required to amend it before the payment is authorised. The dispute therefore creates a risk of delay rather than an automatic cancellation of the grant.

Nevertheless, timing is becoming increasingly important. The Recovery and Resilience Facility is approaching its conclusion, leaving national governments with less room to correct incomplete reforms or renegotiate politically sensitive measures.

Romania is simultaneously working on a new public-sector wage law, which it intends to adopt by the end of October. That legislation is connected to a separate recovery-plan grant, also worth approximately €770 million, which the government is trying to recover at least in part.

The two cases demonstrate how the final stage of Romania’s recovery programme is becoming increasingly dependent on complex legislative reforms. They also highlight the tension between domestic political decisions and the need to comply with the legal standards and reform commitments attached to EU funding.

For Bucharest, the immediate objective is therefore not only to defend the integrity law but also to preserve enough time to correct it. A delayed response could turn a legal dispute into a substantial financial problem for a government already under pressure to maximise the absorption of the remaining European recovery funds.

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  • ceenewsadmin
    ceenewsadmin

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