DIPLOMATIC ECONOMY

Romanian PM Vows ‘Extended’ Plan To Lift Austria’s Schengen Veto

Romania Prime Minister
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By Sarantis Michalopoulos | EURACTIV.com

Romania’s new government will launch an extended plan in the coming months to get Austria to remove its veto on the country’s long-desired Schengen accession, social democrat Prime Minister Marcel Ciolacu told EURACTIV.com in an exclusive and one of the first interviews he gave since taking his new role.

Ciolacu was appointed prime minister on Thursday, June 15 by the two chambers of the Romanian parliament to lead a coalition government with the National Liberal Party (PNL – EPP) following an agreed government rotation.

After joining the EU in 2007, Bucharest has sought access to the EU’s passport-free Schengen zone but has faced many obstacles at every turn. In late 2022, its attempt at accession, which requires member state unanimity, was blocked by Austria, which cited increased numbers of third-country asylum seekers entering the country via Romania.

But Ciolacu has overcoming the issue, high on his agenda.

“I will ask the new Minister for Interior [Cătălin Predoiu] and the new Minister for Foreign Affairs [Luminita Odobescu] to present an extended plan for the months to come to see what can be done to change the veto applied by the right-wing government from Austria,” Ciolacu told EURACTIV.

The social democrat leader avoided making any predictions regarding the accession date in order not to create “false expectations”.

“We had a chance last year, those in charge have missed that opportunity. This does not mean we will give up. I have already been in touch with the upcoming Spanish Presidency to the EU Council and the European Commission to see what they plan to do on this file in the second part of the year,” Ciolacu said.

He added that the country should learn from last year’s mistakes and noted that in the new government, those responsible for the file are no longer in their roles.

“We need to involve everyone in the process and the elaboration of the strategy and build a national coalition with all those interested in helping Romania achieve this objective. If there is anything I can do based on those recommendations coming from experts, I will certainly do it,” he said.

Focus on agrifood, construction industries

Asked about his economic priorities, he stressed that his government’s objective is to be at the forefront of the EU’s new industry push.

“I strongly believe in our continent – and in particular my country – have to become again the industrial hub of the world, of course, a modern industry, energy efficient and environmentally friendly industry that offers well-paid jobs,” he said.

Ciolacu explained that the state would “immediately intervene” in supporting the agrifood and construction materials sectors with specific financial support mechanisms designed to develop the industries.

“Furthermore, we plan to accelerate key projects already defined with our strategic partners in energy, agriculture or the digital sector.”

He said the main focus of new government would be to “give a meaning” to this large coalition by launching an economic and social modernisation of Romania to increase living standards, stimulate investments, develop the infrastructure and upgrade our economy for people to be better skilled and better paid.

“We will come up with new measures like developing our agricultural and construction sectors, accelerating the implementation of EU and Recovery and Resilience Facility (RRF)funded projects, in particular in transport, and seeking to be more present on European and global markets with Romanian products and services”, he said.

A key strategic hub for NATO

On the radar is also the EU and NATO defence industry, with Ciolacu saying Romania could become a “key strategic hub” through “significant investments” in upscaling and modernising the defence industry, making Romania a viable NATO and EU player in the region.

“We hope to also use the new facilities created to support the industry at European level and the added value provided by the Recovery and Resilience Facility (RRF). Romania has the raw infrastructure, the skilled workers, energy and mineral resources, and it is a strategic regional location for such types of investments”, he said.

He explained that Romania will continue to be a “reliable and predictable” partner in the region while using its role to reinforce its position with its allies in the Southeast part of Europe, the Black Sea region and the Caucasus.

“All those key economic measures are linked to our new vision for the nation designed to make Romania a key regional hub in partnership with the EU and NATO, providing stability in the Black Sea region, promoting democracy, supporting the accession to the EU of the Republic of Moldova and actively participating with its allies in the reconstruction of Ukraine.

Moldova’s path toward the EU

Asked about Moldova’s EU path – to which Romania has been a strong advocate – he expressed his hope that “soon” the country will be allowed to start the official negotiations and get access to pre-accession EU funds.

“Romania is the first investor in Republic of Moldova, and we will develop new mechanisms allowing you to develop that even more. Together with other partners, we want to expand our economic presence in the region and show the EU is enabling Eastern countries to achieve convergence and become relevant trade actors,” he said.

He added that the current pro-European government in Moldova, President Maia Sandu and all Moldavians defending EU accession “need our support and of the EU to continue making the reforms that will bring them closer to the Union”.

A coalition beyond 2024

Regarding domestic politics, Ciolacu said if the current coalition’s scheduled reforms are implemented, then the coalition should continue “even beyond the elections in 2024”.

“I truly believe we do not have other choices in the Romanian political environment than to continue this path […] I hope our coalition partners understand our common responsibility and those that will try to ally with the extremists, with the far right, are not statesmen and will most likely disappear from politics very soon because such an alliance is proof they have failed”.

“We even decided to postpone the election of the new government to find solutions for the demands of teachers. Moreover, we already decided to reduce the number of ministries and will do the same with the secretary of states”, he said, adding that by the end of the year, his government will reform the pensions system, ban special pensions and build a new law on public salaries.

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