Romanias interim PM says Social Democrats block public wage law, risking EU funds

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Romanias interim PM says Social Democrats block public wage law, risking EU funds
Cyprus unveils pension reform with up to 50% increases for lowest earners: largest overhaul since 1980
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Romania’s interim Prime Minister Ilie Bolojan said on Tuesday that the likelihood of Parliament adopting a public sector wage law by the Aug. 31 deadline is now low, placing blame on the Social Democratic Party for failing to honor its commitment to support the bill. Without the law, Romania risks forfeiting €770 million in European funds under the National Recovery and Resilience Plan, Bolojan told Digi24 .
Bolojan said the window to submit the draft expires on Wednesday, and without PSD backing, the legislation will not proceed. He warned that failure to pass the law would add pressure to macroeconomic balances and could trigger further slippage in 2027–2028 if future governments prioritize electoral calculations over fiscal discipline . “If the law is not submitted, the party bearing responsibility is PSD,” Bolojan said .
On Wednesday, Bolojan confirmed that his National Liberal Party will vote for the so-called “Fritz amendment” in the Senate, despite considering it abnormal, to ensure Romania meets a separate PNRR milestone . The amendment, proposed by PSD and AUR, has drawn scrutiny from the European Parliament’s PPE and Renew groups, which asked the European Commission to verify whether it violates EU law and democratic principles. Bolojan said the Commission will assess the legislation as part of Romania’s final PNRR payment request .
Bolojan also addressed a Senate decision to form an inquiry committee into his meeting with Constitutional Court President Elena-Simina Tănăsescu, calling it a political maneuver. He said the meeting took place in an official government building and covered administrative matters, including the court’s request for office space .
Separately, Bolojan said Romania needs a full-fledged government by September, as the current interim arrangement has lasted too long. He stated that coalition talks will resume when Parliament reconvenes, emphasizing the need for a government capable of passing a budget rectification and other stalled legislation .
Moldovan Prime Minister Vasile Tofan revealed on Tuesday that he had consulted Bolojan in late July about appointing Romanian politician Claudiu Năsui as Moldova’s minister of economic development and digitalization. Tofan said Năsui’s economic views align with Moldova’s goals of reducing state spending and taxes, and that his experience would strengthen bilateral ties .
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