MIPE proposes new financing model for 2028-2034,based on European, national money and private investments

  Romania is preparing the transition to the National and Regional Partnership Plan (PPNR), which could bring about 70 billion euros in European funds, to which national contributions and private investments would be added, said on Tuesday the Minister of Investments and European Projects (MIPE), Dragos Pislaru, at a specialized conference.The development needs exceed 70 billion euros, which is why the ministry is proposing a co-financing mechanism that could double the investment capacity in the next financial framework, up to over 140 billion euros."Romania currently has a horizon to move from the current PNRR to what will be called the PPNR, the National and Regional Partnership Plan, where we have a figure already allocated to Romania, 60 billion euros. Of this amount, part must be allocated to the Common Agricultural Policy, and the rest is money for the regions and for national priorities. Separately, we have a Competitiveness Fund, where Romania's minimum ambition should be about 10 billion euros. In total, 60 billion euros, plus 10 billion euros, means 70 billion euros. Can 70 billion euros be divided to continue this sustainability perspective that we need? My answer is no. In Romania we have an expression that will be a little harder to translate for colleagues, but who are already used to our popular expressions: two straws for three donkeys, in the sense that we now have, from the infrastructure needs, about 15 billion euros only for the infrastructure sector, which will move into the next financial perspective, because we do not yet have enough money to cover everything, from water needs, the remaining sewer, to highways, railways and modernizations that we have only for infrastructure. Therefore, 70 billion euros are not enough," mentioned Dragos Pislaru, at the "Conference - discover Romania. What are Romania's assets in the competition for attracting investments? - an initiative of the Deloitte Romania Foundation.Therefore, the Minister of Investments proposes "a paradigm shift", so as to reach the amount of 140 billion euros in the period 2028-2034."My proposal is that, this time, we go for a paradigm shift, to 1 euro of European money, 1 euro of national money. What does that mean? 70 billion euros of European money, 7 years of the financial framework, 10 billion euros per year. If we calculate that we already had 30% budgeted in the usual way anyway, it would mean a difference of 20% that comes from adjustment mechanisms. I will have this discussion at my leisure with the Minister of Finance (Alexandru Nazare - editor's note) but, from the calculations I made based on the way the projections show, 10 billion euros of investments per year is not a problem for Romania. 70 billion euros, plus 70 billion euros, we reach 140 billion euros in the period 2028-2034. This means the multiannual anchoring of national resources, the fact that we now have maximum freedom given by regulations that no longer prevent us from using it for what Romania decides it should be used for, either through bottom-up programming at regional level, or through national sectoral policies, or through money you give to the classic common agricultural policy area, but what is crucial is that you are looking at 140 billion euros. The icing on the cake that I want to propose is that I would like us to not do such planning only by consulting the private sector, but through a commitment mechanism, of engagements, that is, for one euro of European money, one euro of national money and one euro of private sector investment," added the minister.According to him, if programming begins in February-March, the goal would be to complete this programming in July 2027."This would mean that we have a year and a half discussion with the private sector, which are the strategic investments that the private sector is putting on the table for the next period. You can think of an inflation reduction act type framework, in which, through financial instruments, any strategic investment can receive 20% support, which comes directly from the strategic programming it makes. This means a double leverage, that is, on the one hand I have the European funds that create leverage on the national funds and, on the other hand, the European and national public money that creates leverage on the private money - and vice versa. This means that we are discussing something unprecedented - namely that we can move from an extremely unpleasant situation of painful adjustments, in which the economy is still adjusting, to an unprecedented multiannual programming for seven years in which we have lock-in, so we have clear resources - both European and national - on a plan that is 200-210 billion euros in size and which actually aims at the continuity of a model based on investments and with the change of Romania's ambition from a catching up economy, i.e. an economy that is catching up, to an economy that becomes an important regional actor assumed at European level, contributing directly to value chains", Dragos Pîslaru specified.The head of MIPE emphasized that next year we expect 2.62 billion euros, after submitting Payment Request 4 on the PNRR."For me, at the Ministry of Investments and European Projects, and for the Government, the firefighting phase ends this year. It will end with the submission of payment request no. 4 on the PNRR, where we will expect very quickly next year 2.62 billion euros, the fastest request that has been on the PNRR and which I hope will give confidence. Starting in February, March, after we have a discussion in the Coalition, in the Government, we will start to have this construction which is, in my opinion, an unprecedented opportunity to consolidate a model based on investments, with private actors at the table, partners in this 'Holy Trinity', if you will, of the investments that we are proposing in the future. Romania has no reason to wait for the completion of the negotiations in Brussels. Romania should, by July next year, complete this vision of the country," Pislaru supported.In his opinion, the National and Regional Partnership Plan is a pretext but, at the same time, "an opportunity to use this anchoring in European regulations to pursue the national interest"."The most patriotic thing possible in this country, in the coming period, is to use European money well, so that the public sector, the private sector, national money, European money, are all put to good use for the same causes. This is the perspective that I would like to offer as an opportunity for foreign investors, but also for local ones - and I believe that ultimately this economic concept of self-fulfilling prophecy, that is, the self-fulfilling prophecy that we have in the economy - is one that can transform Romania into a success story both in adjusting and putting the house in order, as well as in the investment model that is more than feasible, all these things in parallel with the completion of the projects that we have underway and with the absorption of money, especially from the PNRR next year," the minister added.