New government rules for checking and penalising PNRR projects in Romania

The background to the legislative changes for PNRR

The Romanian Government has recently adopted an ordinance that significantly changes the rules on checks and penalties in the implementation of projects financed through the PNRR (National Recovery and Resilience Plan). The initiative comes at a crucial moment, when the efficient and transparent absorption of EU funds is a national priority. The PNRR is a major source of funding for Romania, with a budget of more than 30 billion euro, directed towards digitalisation, the green transition and infrastructure development.

Previously, the control of irregularities and the application of effective penalties were critical points for avoiding financial blockages and for improving credibility with the European Commission. The amendments adopted aim to strengthen this framework through clear procedures and more enforceable measures.

The main changes and their direct impact on entrepreneurs

The ordinance introduces three major changes to the way checks and penalties for PNRR projects are carried out:

• Clarification of the procedures for preventive checks and checks after implementation, with an emphasis on risk assessment and more frequent checks at beneficiary level.
• Establishment of detailed penalties for identified irregularities, which will include both financial penalties proportionate to the value of the project and the possibility of suspending a project or barring access to future funds.
• Improvement of the mechanisms for transparency and communication of the results of checks, to ensure greater accountability and to avoid dubious interpretations of reports.

These changes require entrepreneurs who access PNRR funds to adapt their internal processes so as to guarantee full compliance with the requirements and to prevent any suspicion of fraud or irregularity.

Who are the eligible beneficiaries for PNRR projects?

PNRR projects are aimed at a broad range of economic and institutional actors, bringing together private companies as well as local and central public institutions. Eligible beneficiaries include:

• Romanian entrepreneurs in the private sector – SMEs and large companies, with projects that contribute to the PNRR objectives, such as digitalisation, sustainable development or technological innovation.
• Public authorities and local administrations, which implement infrastructure projects, projects to modernise public services or projects for environmental protection.
• Non-governmental organisations and educational and research institutions involved in social and educational projects financed through the PNRR.

Companies must have solid internal control and provide complete documentation for audits, which makes careful preparation before submitting a project essential.

The documents companies need to prepare and the main points to watch

In light of the new rules, beneficiaries must pay closer attention to the following procedural and documentary aspects:

• The project file: it must include all the documents initially required – plans, detailed budgets, contracts, invoices and approvals – and these must be correct and compliant with the rules imposed by the PNRR.
• Internal monitoring and reporting mechanisms: companies must put effective internal controls in place to monitor progress, use of the budget and compliance with the eligibility criteria.
• Audit preparation: because checks are frequent and rigorous, beneficiaries must make sure they can provide clear, documented evidence of all expenditure and actions undertaken.
• Liability for any breaches: any irregularity identified can lead to serious penalties – from recovery of the sums to long-term exclusion from access to EU funds.

Strategies for success and risk prevention in implementing the PNRR

Beyond documentary compliance, companies must develop an organisational culture geared towards transparency and accountability in managing EU funds. Practical recommendations for companies planning or implementing PNRR projects include:

• Investing in a department or consultant specialising in EU funds, who will continuously track legislative changes and properly prepare reports and checks.
• Developing an internal system for audit and risk assessment, which detects potential problems before they are officially identified.
• Keeping clear, well-organised records for all stages of the project, which makes it easier to respond promptly and with documentation in the event of checks.
• Maintaining constant communication with the authorities and following the recommendations in the official PNRR guidelines, to avoid inconsistencies and misinterpretations.

In this way, companies can not only avoid penalties but also increase their chances of success in accessing and efficiently implementing projects with a major medium- and long-term impact.

Want to find out what non-refundable funding you can access?

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