Government reallocates 200 million euros from PNRR for private sector development

Bucharest, Romania – The Romanian government has greenlit the reallocation of 200 million euros from the National Recovery and Resilience Plan (PNRR) to bolster the country's private sector. This strategic move, approved via two government memorandums, aims to expedite the deployment of funds through financial instruments.

The first memorandum facilitates an additional agreement with the European Investment Bank (EIB) for a "Fund of Funds" focused on digitalization, climate action, and other key areas. This adjustment allows for the rapid operationalization of the 200 million euros, specifically targeting the "Resilience Portfolio Guarantee" sub-investment. This reallocation was approved by the European Commission as part of a PNRR modification in 2025, aligning with EU priorities for stimulating productive investments.

The second memorandum concerns a new contribution agreement with the European Commission for the InvestEU program. This will increase the allocation for the "Resilience Portfolio Guarantee" from 300 million to 500 million euros, by redirecting 200 million euros from the EIB Fund of Funds, which faced a risk of disengagement. The government stated this aims to prevent the loss of European resources and streamline administrative procedures.

Officials highlighted that these measures are designed to ensure more efficient use of PNRR funds. The initiative is expected to strengthen support for the private sector by improving access to financing for productive investments and working capital, thereby enhancing the resilience of the Romanian economy. The government views the signing of the new agreement as a crucial step for the rapid operationalization of these reallocated funds and maximizing their economic impact.