Big Step for Social Economy in Romania!
Advancing Social Economy in Romania: Strengthening Procurement Reform
In a significant step towards fostering social responsibility in public spending, ADV Romania Group, in partnership with the Romanian Social Economy Network (RISE) and the Social Finance Association, has been actively advocating for legislative amendments in Romania’s public procurement law. This initiative is also supported by the Romanian-American Foundation, further reinforcing its impact.
A Legislative Milestone for Social Enterprises
Last year, the three partners initiated a proposal in the Romanian Parliament aimed at requiring public authorities with annual procurement budgets exceeding €3 million to allocate 0.5% of their budgets to reserved contracts for Work Integration Social Enterprises (WISEs). While the current legislation permits such purchases, data from the National Agency for Public Procurement (ANAP) indicates that these procedures are rarely implemented. The absence of a mandatory framework, coupled with limited awareness on how to engage in such procurement, has contributed to this issue.
With only 90 registered WISEs in Romania, concerns have been raised about their market availability. The proposed 0.5% allocation is designed to encourage the gradual development of this sector, ensuring that public procurement becomes an effective tool for strengthening the social economy. The proposal has already passed in the Senate and is currently under review in the Chamber of Deputies.
Expanding Opportunities Beyond Legislative Reforms
Beyond the parliamentary effort, the three partners have also engaged with the Romanian Government and ANAP to advocate for a mandatory percentage of direct procurement from WISEs. Given that direct procurement occurs more frequently than large-scale tenders, this move could significantly enhance WISEs' access to stable contracts.
Raising Awareness and Building Capacity
To further advance the initiative, ADV Romania, ANAP, and their partners organized a webinar in December 2024, attracting over 200 participants from public authorities and social enterprises. This event provided valuable insights into socially and environmentally responsible procurement and the benefits of reserved contracts for WISEs. Due to its success, an agreement has been reached with ANAP to host additional training sessions in 2025, ensuring broader awareness and adoption of socially responsible public procurement practices.
A Sustainable Future for Social Enterprises
This initiative marks a crucial step in embedding social responsibility into Romania’s public spending policies, providing sustainable opportunities for WISEs, and strengthening the country’s social economy. With continued support from key stakeholders, including the Romanian-American Foundation, the potential for systemic change in social procurement is more promising than ever.
Authored by: Angela Achitei, WeBuySocialEU Ambassador President, ADV Romania & RISE Romania
Feb. 7, 2025
