Expanded EU budget earmarks a 17% increase in funds for Romania's cohesion and agriculture sectors
The European Union (EU) has announced a new Multiannual Financial Framework (MFF) for the period 2028-2034, with Romania set to receive a significant boost in funding. The total allocation for Romania under the new MFF is estimated at €60.2 billion, marking a 17% increase compared to the previous 2021-2027 MFF. However, the disbursement of funds will come with stricter disbursement criteria, as outlined in the draft published by Economedia.ro.
The new MFF aims to allocate funds more strategically and transparently, consolidating different funds under National and Regional Partnership Plans. This approach is designed to align EU priorities with national and regional needs, potentially increasing the effectiveness of investments.
One of the key changes in the new MFF is the introduction of stricter conditions for fund release. Romania will need to demonstrate clear priorities, readiness, and capacity to deliver measurable outcomes before funds are disbursed. Another significant change is the rule of law conditionality, which ensures that compliance with rule of law and fundamental rights will be an unconditional prerequisite for any EU funding.
The new MFF also proposes a total of €54.6 billion for Romania under cohesion policies and the Common Agricultural Policy. Since agriculture funds were previously relatively unrestricted, the introduction of stricter disbursement rules may slow down or complicate fund absorption in this sector unless Romania adapts well to the new conditions.
The debate on the new MFF is expected to last for the next two years, with the main issue being the lack of money due to various financial commitments. The total EU budget for the 2028-2034 MFF remains at €865 billion. It's worth noting that six European Commissioners, including Romania's representative Roxana Mânzatu, have expressed their opposition to the European Commission's proposal to finance the future Union budget by introducing new taxes.
The final approval of the MFF 2028-2034 decision is required by the end of 2027 from all member states and an absolute majority of the European Parliament. Additionally, additional funds will be available on a competitive basis at the European level for all member states.
In summary, Romania will receive a notable increase in total funds, but these come with more stringent and conditional access rules. The new MFF represents a shift towards better-targeted, accountable, and results-driven EU funding for Romania, demanding enhanced management capacity, legal compliance, and strategic clarity to fully benefit from the allocation.
- Romania's business and finance sectors will need to demonstrate strategic priorities, readiness, and the capacity to deliver measurable outcomes to access the funds allocated under the new Multiannual Financial Framework (MFF).
- The new MFF aims to increase the effectiveness of investments, particularly in the agriculture sector, by consolidating different funds under National and Regional Partnership Plans, which are designed to align EU priorities with national and regional needs.
