Commission takes step towards lifting suspension of payments for Portugal and for Romania

The European Commission has adopted two decisions, issuing a positive preliminary assessment to lift the suspension of payment of €714 million to Portugal, and €37.2 million to Romania (net of pre-financing), after acknowledging the progress made in implementing their respective recovery and resilie

This comes after earlier suspensions, where the Commission had found certain milestones and targets had not been satisfactorily fulfilled in Portugal ‘s third and fourth payment request, and Romania's second payment request.

€714 million following reforms in the health sector and regulated professions in Portugal

The Commission had found that two milestones and one target in Portugal's payment request for the third and fourth instalments for grant support had not been satisfactorily fulfilled. This led to a withheld amount of €810 million, and, should Member States agree to the lifting of the suspension, would lead to a net payment of €714 million.

After the initial suspension, Portugal was encouraged to take action over a six-month period. The Commission has now found that Portugal has taken measures to ensure that all outstanding milestones and target have been satisfactorily completed.  

Specifically, in December 2023, Milestone 1.12 and Target 1.3, related to the health sector reform, as well as Milestone 6.15 concerning the reform of regulated professions, were initially deemed as not satisfactorily met. The suspension mechanism allowed the country to receive a partial payment for the milestones and targets that had been satisfactorily fulfilled, while giving it additional time to fulfill the outstanding requirements.

Making use of the extended timeframe, Portugal implemented a series of effective actions, which have improved the work regime for health professionals in the National Health Service and completed the decentralisation of health responsibilities, significantly bolstering the country's public health framework. Furthermore, Portugal has enacted reforms that remove red tape in highly regulated professions, paving the way for a more dynamic labour market.

Portugal's overall recovery plan, amounting to €22.2 billion in grants and loans, encompasses a series of reforms and investments to strengthen its economy. The Commission has disbursed over €7.7 billion to Portugal, which corresponds to 34% of all the funds in the Portugal plan, with 22% of all the milestones and targets in the plan fulfilled.

Further details on Portugal's recovery plan, including a map of projects funded under the RRF, are available here.

€37.2 million following measures promoting the green transition in Romania

The Commission had found that two specific milestones in Romania's second payment request had not been satisfactorily fulfilled. This had led to a withheld amount of €53.4 million. After the initial suspension, Romania was encouraged to take action over a 6-month period. The Commission has now found that Romania has taken measures to ensure that part of the outstanding milestones have now been satisfactorily completed.   

Specifically, in June 2023, milestone 129, related to green hydrogen production capacities, along with milestone 133, concerning investment in less carbon-intensive heat generation facilities, were initially deemed as not satisfactorily met. The suspension mechanism allowed the country to receive a partial payment for the milestones and targets that had been satisfactorily fulfilled, while giving it additional time to meet the remaining outstanding requirements.  

Making use of the extended timeframe, Romania implemented a series of effective actions, which have accelerated the decarbonisation of its industry. The Commission concluded that milestone 133 is now satisfactorily fulfilled. Accordingly, it now proposes to unlock €37.2 million corresponding to this milestone. 

In relation to milestone 129, the Commission notified Romania that it continued to consider the milestone as not entirely satisfactorily fulfilled, while recognising the progress made in its completion. Romania now has two months to send further observations to the Commission, after which the release of the outstanding amount related to milestone 129 may still be decided. 

Romania's overall recovery plan, amounting to €28.5 billion in grants and loans, encompasses a series of reforms and investments to strengthen its economy. The Commission has disbursed over €9.4 billion to Romania, which corresponds to 33% of all the funds in the Portugal plan, with 14% of all the milestones and targets in the plan fulfilled. 

Further details on Romania's recovery plan, including a map of projects funded under the RRF, are available here.