Romania hit a major milestone in 2025 with its outstanding performance in European fund management. The task team achieved a record-breaking 97.2% absorption rate and secured fourth place among EU member states.
Romanian SMEs make up 99.7% of companies and now have better access to funding than ever before. A complete support package includes €300 million for digitalization and green practices that will help these businesses grow steadily. Romania used European funds strategically to build reliable foundations for economic growth, new breakthroughs, and environmental sustainability.
These initiatives showcase Romania’s expertise in maximizing European funding and set new benchmarks for future EU development programs.
Romania has secured 79.9 billion euros in external funds, both reimbursable and non-reimbursable, for 2021-2027. The National Recovery and Resilience Plan will provide 28.5 billion euros to boost digital transformation, green transition and social cohesion throughout the country.
Task team breaks previous records in fund allocation
Romania’s task team has shown remarkable results in managing European funds. They achieved a 97.2% absorption rate for operational programs financed by the Cohesion Policy. This outstanding performance made Romania the fourth-highest fund recipient among all 27 EU Member States.
Team achieves 85% absorption rate
Romania’s task team proved their efficiency through a 155% contracting rate, which created ideal conditions to boost absorption rates further. The team also managed €9.5 billion in Recovery and Resilience Facility resources. This amount represents 33.3% of Romania’s revised National Recovery and Resilience Plan.
How the breakthrough happened
Several strategic initiatives led to this breakthrough. The team made it mandatory for legal person taxpayers to enroll in the Virtual Private Space, an online tax system. The National Agency for Fiscal Administration and Labor Inspectorate created a joint action plan to prevent unregistered work.
Key improvements include:
- Portfolio guarantees now help small and medium-sized firms
- SMEs and startups receive equity support
- Large companies can access loans that target climate and digital objectives
- New guarantees make energy efficiency in residential buildings possible
Key success metrics
The team hit 66 milestones and four targets, which shows their strong performance. The European Regional Development Fund and Cohesion Fund helped more than 20,000 companies and made digitalization possible for over 400 public institutions.
The task team excelled at managing the Just Transition Fund. They supported more than 5,800 Romanian businesses in their shift toward a climate-neutral economy. The ‘Keep Up’ program and other upskilling actions helped boost employee training in technological developments.
Digital platform revolutionizes application process for subventions in agriculture in Romania
The Rural Investing Finance Authority (AFIR) has launched an advanced digital platform that changes how European funds Romania processes and monitors funds. AFIR started working with UiPath in 2020 and uses AI-powered automation to simplify grant submissions and administrative processes.
New automated system reduces processing time
AI-based automation has made processing European funds in Romania much more efficient. AFIR’s platform has processed financing requests worth 5.32 billion euros from more than 50,000 farmers, companies, and local institutions. The platform now handles these tasks:
- Document verification and processing
- Administrative file management
- Inter-institutional communication
- Live application tracking
- Automated compliance checks
Government staff saved 784 hours on document searches. The platform also speeds up technical and financial evaluation stages for funding applications.
Live tracking boosts transparency
The new platform has created connected communication channels between the National Agency for Fiscal Administration, Ministry of Finance, and National Trade Register Office. This merger allows live monitoring of application status and makes fund allocation more transparent.
The platform shows its success through simplified processes. Farmers spend less money to get and submit approvals. The system has changed the traditional application process by:
- Automating administrative tasks
- Providing instant access to documentation
- Processing financial files faster
- Creating direct communication channels with beneficiaries
The Ministry of Investments and European Projects (MIPE) merged this platform with a user-friendly interface. It follows visual identity rules and helps beneficiaries network. This digital change makes AFIR the first Romanian ministry working with EU funds to use AI in its digital process.
Agriculture sector receives a major boost in Romania
Romania’s agricultural sector has received €14.9 billion in Common Agricultural Policy (CAP) Strategic Plan funding. This money helps farm development, environmental projects, and rural growth programs in the country.
Rural development programs get priority funding
The National Rural Development Program works through the European Agricultural Fund for Rural Development (EAFRD) to create strong support systems. The program gives €151.3 million to fruit farm investments. These funds help farmers with:
- Farm modernization and equipment procurement
- Processing unit establishment
- Orchard development and conversion
- Fruit tree nursery expansion
Small farmers benefit from simplified procedures
Small farms play a vital role in Romania’s agricultural world, and 90% of them operate on less than 5 hectares. The Payment for Small Farmers (PSF) scheme makes income support easier by using a single, simple system instead of multiple payments. These farms need to meet active farmer requirements but face fewer administrative tasks.
Innovation grants reshape traditional farming
Targeted innovation grants have changed how traditional farming works. Romania’s Ministry of Agriculture launched the DR-15 intervention measure that gives non-repayable aid up to 65% of eligible costs, with project funding reaching €1.5 million. The program supports:
Agricultural cooperatives and producer groups get first access to funding. 102 processing investment projects worth €259.3 million have already received approval. These investments help condition, store, and process agricultural products to make the sector more competitive.
The program puts €5.6 billion toward environmental and climate goals. These strategic investments will create 12,000 new rural jobs. Young farmers who started their operations in the last five years get significant support, showing the program’s commitment to bringing fresh talent to farming.
Infrastructure projects secure maximum funding
Romania has secured €2.5 billion in funding from the Connecting Europe Facility (CEF) Transport program. This money will help expand and modernize the country’s trans-European transport network.
Transport networks receive €2.5 billion
Railway infrastructure modernization is the life-blood of this initiative. The plan aims to upgrade 315 km of railway lines by implementing the European Rail Traffic Management System (ERTMS). The road infrastructure will grow with 429 km of new motorways scheduled for completion by Q2 2026.
Two major projects highlight the focus on cross-border connectivity:
- The Albița-Leușeni Bridge project with an 8 km access road costs €87.6 million
- The Roman-Iași-Frontieră-Ungheni railway rehabilitation needs €67.6 million
These initiatives have made the transport sector a key recipient of european funds romania. The projects focus on multimodal freight terminals, passenger hubs, and smart transport applications.
Energy sector modernization plans approved
The Modernization Fund now supports major energy system improvements in Romania. The fund targets six priority areas that include renewable energy generation, energy efficiency improvements, and network modernization.
Projects worth more than €6 billion from the Modernization Fund have received approval. The scope includes electricity distribution system upgrades and support for prosumers. The Ministry of Energy has obtained €16 billion in grants through this fund.
Several landmark projects define the energy sector transformation:
- A gas-fired power plant in Mintia worth over €1 billion with 1.7 GW capacity
- The Cernavodă nuclear power plant expansion adding reactors 3 and 4 with 1.4 GW combined capacity
- A small modular reactor project with six modules of 77 MW each
- The Tarnița-Lăpuștești pumped storage hydropower plant reaching 1 GW capacity
SMEs Drive economic growth in Romania through EU Funds
Small and medium enterprises (SMEs) make up 99.7% of Romanian companies. These businesses pioneer economic development through strategic use of european funds romania. Their productivity lags 40% behind large companies, but they now have unprecedented access to transformative funding.
Digital transformation grants realize the full potential
The digital world for SMEs has grown substantially. The Digital Europe Program helped Romanian businesses secure funding through portfolio guarantees, equity support, and specialized loans for digital objectives.
Right now, 27% of Romanian SMEs meet simple digital intensity criteria. This presents a real chance to grow. The government has set aside €1.8 billion for digital transformation. The funding covers:
- Digital public services boost
- Continuous connection infrastructure development
- Cybersecurity strengthening
- Digital skills advancement
- Human capital development
The COVID-19 pandemic sped up digital adoption, with 45% of Romanian firms investing in digital technologies. The Authority for the Digitalisation of Romania (ADR), a 3-year old organization, leads these initiatives through complete support programs.
Green technology adoption accelerates
The green transition is a vital priority, with SMEs generating 50% of Romanian GDP. Environmental sustainability has gained momentum through targeted funding mechanisms.
Romanian SMEs don’t deal very well with implementing green technologies. The country ranks lowest in the EU for SME access to finance. The European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) introduced blended financial instruments to bridge this gap.
The transformation covers several key areas:
60% of SMEs see digitalization as a way to protect the environment and optimize resources. These initiatives have helped businesses cut operational costs and improve resource efficiency. Electronic signature usage has shown a 50% increase in new SME customers since 2021.
The Just Transition Fund helps diversify the economy by financing SMEs in sectors that promote circular economy and environmentally friendly construction materials. More than 5,800 Romanian businesses have received support to move toward climate neutrality.
The Recovery and Resilience Plan strengthens these efforts with a €300 million fund for digitalization and climate action. A further €400 million in equity finance helps SMEs in their digital and green transitions.
This complete support structure tackles Romania’s current SME density gap. The country has 29 SMEs per 1,000 inhabitants – well below the EU average of 58. These targeted interventions position Romanian SMEs to overcome traditional barriers and adopt both digital and environmental sustainability.
We can help you in Romania
We stand ready to assist you, just as we currently support all our clients. Contact me at frjacobs@telenet.be or reach me at +32 478 331 799.
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