Romania To Establish Fund For Vital Flood Protection Projects

Romania intends to create a special infrastructure fund aimed at addressing flood emergencies over a span of at least five years, Environment Minister Diana Buzoianu announced. The initiative is a key step required to unlock pending European Union recovery funds.

Over the past two years, the country has experienced some of its most destructive floods in about two decades, leading to ten fatalities, overflowing rivers, collapsed bridges, and extensive damage to thousands of homes.

Under a reform agreement with the European Commission connected to access to recovery funds, Romania must put in place a financial mechanism by the first quarter of 2026 to support flood-prevention infrastructure.

Buzoianu explained that the fund will be structured using findings from a comprehensive study showing that Romania requires between 10 billion and 40 billion euros ($11.66 billion–$46.65 billion) over at least five years to restore dams, build bridges, strengthen defences, and complete related projects. However, the coalition government currently in power is already struggling to reduce one of the largest budget deficits in the region cannot yet meet the entire funding requirement.

“At the moment we cannot cover absolutely all the ideal necessary works,” Buzoianu said. “But what I want is for this fund to cover works in areas where we already know we have high risk of flooding without which communities and lives are endangered.”

While the government will determine the final size of the fund, Buzoianu noted that financing will come from water management fees and taxes and will be directed toward high-priority projects highlighted in the study.

Because of delays that prevented projects from being completed before the August 2026 deadline, the environment ministry lost access to 2 billion euros ($2.33 billion) in recovery funds.

Since taking office in late June, Buzoianu has been working to overhaul forestry and water management institutions and ensure compliance with EU targets to secure the remaining funds. Around 40% of the lost amount will now be financed through the national budget.