Romanian recovery plan renews state capacity doubts

Significance

The plan includes ambitious reforms and investment projects, but the Commission’s critical first reactions highlight questions around the feasibility of some of these reforms and the state’s capacity to implement them. The Commission will approve or reject the plan by September 30.

Impacts

• Power struggles within the National Liberals, the senior coalition party, could weaken government ability to implement planned reforms.
• Success is important for the junior coalition party coordinating the plan, USR-PLUS, whose appeal relies on its expertise and competence.
• In several eastern EU states, the RRF could further entrench state capture and clientelistic networks.