Romania to establish national flood infrastructure fund to unlock EU recovery money
BUCHAREST | November 4, 2025 — Romania will create a dedicated infrastructure fund to combat flood risks and strengthen resilience, a key step required to unlock billions in European Union recovery funds, Environment Minister Diana Buzoianu announced.
The fund, to be implemented over at least five years, comes after the country suffered some of its worst floods in two decades between 2024 and 2025. The disasters claimed 10 lives, destroyed bridges, burst riverbanks, and damaged thousands of homes across rural and urban areas.
Under a reform plan agreed with the European Commission, Romania has until the first quarter of 2026 to establish a financing mechanism for flood prevention and critical infrastructure upgrades. Failure to meet this condition risks further delays in accessing EU recovery money.
Based on World Bank study
According to a World Bank study, Romania needs €10 billion to €40 billion ($11.6–$46.6 billion) over five years to reinforce flood defenses, rebuild dams and bridges, and modernize drainage and protection systems.
“Right now, we cannot fund every necessary project,” Buzoianu told Reuters. “But the goal is to ensure this fund supports areas at high risk of flooding, where communities and lives are directly endangered.”
The government will determine the fund’s final value, which will draw primarily from water management fees and environmental taxes. Allocations will prioritize projects identified in the World Bank’s risk assessment study.
Budget challenges and EU funding delays
Romania’s coalition government, grappling with one of the largest budget deficits in the EU, faces limited fiscal space to meet all infrastructure needs. The Environment Ministry has already forfeited €2 billion ($2.33 billion) in EU recovery funds due to delays that made it impossible to complete projects before the August 2026 deadline.
Buzoianu, who assumed office in June 2025, is pushing reforms within forestry and water management agencies to meet EU targets and access remaining funds. She said roughly 40% of the lost EU funding will now be covered from the state budget to maintain critical projects.
“Flood prevention is not only an environmental issue—it’s a national security and community safety issue,” Buzoianu emphasized. “This fund will ensure that the most vulnerable regions are protected first.”
