Romania's Flood Infrastructure Fund: A Lifeline for Recovery

Romania is set to create an infrastructure fund aimed at addressing flood emergencies, a prerequisite to accessing European Union recovery funds, according to Environment Minister Diana Buzoianu. The fund comes in response to some of the worst floods seen in the past two decades, resulting in significant damage and loss of life.

Per a reform plan agreed upon with the European Commission, the country has until 2026 to build this flood-resilience mechanism. The World Bank has estimated Romania requires between €10 billion and €40 billion to rehabilitate its flood defences over five years, yet budget constraints complicate full funding.

Buzoianu, focusing on reforming forestry and water management, expressed the need for priority funding in high-risk areas, covering these through water management fees and taxes. Although some EU recovery funds have been lost, 40% is expected to be covered by the state budget.