€770 million in EU funding is now at the centre of a political battle in Romania.
Liberals are calling on European Commission President Ursula von der Leyen to withhold the money unless Bucharest addresses concerns over a controversial law that could remove ALDE Party member party USR’s leader Dominic Fritz from office.
Renew Europe President Valérie Hayer is urging the European Commission to make clear that EU funds will not be released while the legislation remains in place.
At the centre of the dispute is an amendment to Romania’s integrity law that could remove Fritz, party leader and mayor of Timișoara, from office over a previous conflict-of-interest case. The case was described as fabricated by independent observers. The new rules would apply retroactively, raising concerns over both EU law and Romania’s constitution.
For liberals, legislation should not be used to eliminate political opponents. “European taxpayers’ money must never become a blank check for political power plays,” Hayer said.
The €770 million is part of Romania’s post-pandemic recovery funding, making the dispute a direct test of how the EU uses its financial leverage to protect the rule of law. Liberals are calling for Brussels to act before the legislation reaches President Nicușor Dan and ahead of the 31 August deadline linked to the release of the funds.
The dispute comes in the context of a turbulent period in Romanian politics, at the height of a month-long deadlock following the collapse of the governing coalition. Having already triggered the collapse of the government, the Social Democrats (PSD), with far-right party AUR’s support have also backed the legislation in parliament, adding to the political pressure surrounding the case.
That puts Brussels in a difficult but important position. EU funding is not unconditional: it is tied to commitments designed to uphold the rule of law and ensure that European money is spent within a functioning democratic framework.
For Romania, the next move is political. For Brussels, it is whether Europe is willing to use its power when liberal democracy comes under pressure.
ALDE Party Vice President Dan Barna commented on the dispute:
“If we silently accept the judiciary being confiscated and used as a political bludgeon, it means we're nullifying our entire European journey over the past decades. We cannot stand by passively as the state is captured like this. Romania must remain a European democracy, not a copy of illiberal regimes.”