European Commission Recommendations for Romania

Implementation of European Commission’s specific recommendations in 2018 has made limited progress in Romania, representatives of EU Executive said on Friday during presentation of economic and financial developments in the context of the European Semester and the Europe 2020 Strategy.

However, European Commission will continue to fund key projects for reform of Public Administration, Fiscal Administration or Health, said István Jakab, Economic Advisor, European Commission Representation in Romania.

"European Commission, through various instruments, will continue to support Romania's efforts to achieve the necessary structural reforms for economic development and social cohesion.

European Commission's Structural Reform Support Service provides personalized technical assistance and Romania has set projects with this Reform Service in various fields such as Public Administration, Fiscal Administration, Health, Social Services, Education or the Financial Sector", said István Jakab.

European Commission recommends that Romania take action in 2019 and 2020 to:

1. Ensure compliance with the Council recommendation of XX June 2019 with a view to correcting the significant deviation from the adjustment path toward the medium-term budgetary objective. Ensure the full application of the fiscal framework. Strengthen tax compliance and collection.

2. Safeguard financial stability and the robustness of the banking sector. Ensure the sustainability of the public pension system and the long-term viability of the second pillar pension funds.

3. Improve the quality and inclusiveness of education, in particular for Roma and other disadvantaged groups. Improve skills, including digital, notably by increasing the labour market relevance of vocational education and training and higher education. Increase the coverage and quality of social services and complete the minimum inclusion income reform. Improve the functioning of social dialogue. Ensure minimum wage setting based on objective criteria, consistent with job creation and competitiveness. Improve access to and cost-efficiency of healthcare, including through the shift to outpatient care.

4. Focus investment-related economic policy on transport, notably on its sustainability, low carbon energy and energy efficiency, environmental infrastructure as well as innovation, taking into account regional disparities. Improve preparation and prioritisation of large projects and accelerate their implementation. Improve the efficiency of public procurement and ensure full and sustainable implementation of the national public procurement strategy.

5. Ensure that legislative initiatives do not undermine legal certainty by improving the quality and predictability of decision-making, including by appropriate stakeholder consultations, effective impact assessments and streamlined administrative procedures. Strengthen the corporate governance of state-owned enterprises.

Representatives of Romanian Ministry of Finance have announced that by the end of the year they will provide 700,000 electronic registering devices for the economic agents.

Romania is making efforts to streamline public spending and improve tax collection, said Daniel Vâlcu, Director in Romanian Ministry of Public Finance.

Source:RRA,European Commission.Translated by Miruna Matei