| Summary: | Romania’s extremely ambitious Recovery and Resilience Plan (RRP) was approved in November 2022. The plan is well written and articulated; it seems to correctly identify the critical points of the Romanian economy and society and to address them precisely. From a social point of view, the RRP includes reforms regarding the setting of the minimum wage and the modernisation of the Romanian social benefit system with the help of a subsistence minimum, aimed at combating poverty and creating fairer working conditions. In addition, the comprehensive pension reform is intended to help Romania meet its demographic aging challenges and to ensure compliance with the contribution principle as regards pension right beneficiaries. If applied, these measures would lead to substantial social changes.
The main challenge for Romania, however, could be the implementation of the plan. The current political situation, as well as Romania's history as a late absorber of European funds, may give rise to a certain scepticism.
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