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EC threatens Romania with financial sanctions over coal

Brussels warns Bucharest that delayed decarbonization threatens billions of euros under the Recovery Plan

Aug 7, 2026 03:45 45

EC threatens Romania with financial sanctions over coal - 1

The European Commission has issued an official stern warning to Romania over the changes to the Decarbonization Law voted on August 5.

The new legislative texts, supported mainly by the opposition Social Democratic Party (PSD) and the far-right Alliance for the Unity of Romanians (AUR), call into question the disbursement of billions of euros under the National Recovery and Resilience Plan (NRRP).

Why did the conflict come to this?

The adopted amendment stipulates that the gradual decommissioning of Romanian thermal power plants operating with lignite and brown coal will take place only after new, low-carbon replacement capacities are put into commercial operation on the grid emissions.

According to a European Commission spokesperson, quoted in the official written response to the Romanian national news agency AGERPRES (agerpres.ro), these changes directly threaten the implementation of “Cornerstone 114“ of the NEAP. The EC's position is clear: revising already made decarbonization commitments carries a serious risk of revising past payments and suspending future financial tranches.

Political tension in Bucharest

The draft law has ignited a serious internal political crisis in our northern neighbor:

  • Interim government: Current caretaker Prime Minister Ilie Bologjan warned that the changes could lead to direct financial corrections from the EC.
  • The President: The head of state promised to use all his constitutional powers to return the law to Parliament for review before promulgating it.
  • Opposition: PSD petitioners defended the decision, citing the regional energy crisis and the risks to Romania's energy security.

For now, Bucharest remains committed to a final official commitment to phase out coal by December 31, 2032, but attempts to delay interim schedules could cost the country billions.