Allocation: €14.2 billion in grants and €14.9 billion in loans.
Submission date: 2021
Format of the plan
Romania’s Recovery and Resilience Plan (RRP) includes reforms and investments focused on the sustainability of public finances and the pension system, healthcare, public administration, education, business, and education. The digital and green transition also feature prominently on the agenda, with 41% of Romania’s allocated funds being channelled towards climate objectives.
Summary of the plan
The goals are to be achieved through investments in the following areas:
- Transport: €3.9 billion for the modernisation and electrification of the railway system and €1.8 billion for improved infrastructure in urban areas.
- Energy: €855 million for the transition away from fossil fuels and the deployment of renewables and innovative energy resources, particularly hydrogen.
- Buildings: €2.7 billion to improve energy efficiency and renovate buildings to reduce CO2 emission.
- Biodiversity and environmental protection: €1.1 billion for ecological restoration, forest management, and species protection.
21% of the plan’s total allocation for investments will also support digital objectives in three areas:
- public administration, €1.5 billion;
- health, €470 million ;
- education, €881 million for enhancing digital pedagogical skills, educational programmes, and modern equipment, including in universities.
Youth Dimension
By addressing long-standing weaknesses and systemic deficiencies, Romania’s RRP is expected to improve social and territorial cohesion, create new job opportunities, develop green and digital skills, and promote the long-term development of the country. The Plan aims to help implement the European Pillar of Social Rights by promoting policies for children and the youth, with a particular focus on the areas where the pandemic has hit the hardest, notably health, education, and the business environment. This will contribute to Romania’s convergence with the Rest of the EU in terms of living standards and welfare.
The COVID-19 crisis has taken a heavy toll on the Romanian labour market, with the unemployment rate of young people standing at 16.8 % in 2020. The Plan aims to alleviate employment challenges for young people by developing training programmes and tackling early school leaving, so that the skills of graduates from vocational and higher education are better aligned with the demands of the labour market.
