Case Study: How a Romanian Commune Revitalised Itself with EU Funds
Despite the challenges inherited from a communist regime marked by stagnation and lack of initiative, Romania continues to demonstrate that progress and innovation are possible. In one Romanian commune, entrepreneurial spirit and good governance have proven that impactful change can be achieved. While echoes of old power structures and inefficiencies still influence national development, this example shows that Romania is a place where things can be done, and done well, contrary to expectations.
I started my analysis from the recommendations published in June 2024 by the European Union in the European Semester - an annual exercise that coordinates the EU's economic and social policies. During the Semester, EU Member States align their budgetary and economic policies with the objectives and rules agreed upon at EU level.
The June document for Romania confirms yet again that “the systematic involvement of local and regional authorities, social partners, civil society and other relevant stakeholders remains essential to ensure broad ownership for the successful implementation of the recovery and resilience plan.”
“Public employment services should continue to be improved. In this regard, it is particularly relevant to improve the effectiveness of labour market activation measures for women, young people not in employment, education or training, people with disabilities and marginalised communities, such as Roma. Investment in education and training as well as in the upskilling and reskilling of the population is needed. The accessibility and quality of social and long-term care as well as health services across the country for vulnerable groups need improving, while deinstitutionalisation measures need accelerating.”
The report underscores the significance of improving the management and sustainability of the water, wastewater and waste sectors, investing in the railway networks and sustainable urban transport as a continued priority, alongside biodiversity protection.
They certify that “Romania has made progress in implementing cohesion policy and the European Pillar of Social Rights, but challenges remain and significant territorial disparities in investment and employment persist between the capital region and the other regions, as well as between urban and non-urban areas.”
An inspiring example of what can be achieved comes from Ciugud, a commune in Alba County. It has gathered significant attention in the last years for its remarkable development, often surpassing many urban areas in the country.
This transformation is largely attributed to the strategic utilisation of European funds, which have been instrumental in modernising infrastructure and enhancing the quality of life for its residents.
Under the leadership of Mayor Gheorghe Damian, in office since the year 2000, Ciugud was able to bring over nearly 50M EUR in European funds. These investments have been directed towards various sectors, including infrastructure, education, culture, tourism, sports, and social services. The commune's journey with European funds began in 2005, prior to Romania's EU accession, with a 50K EUR Phare project aimed at digitalising the local administration. “This initial success paved the way for more ambitious projects, such as a 7.5M EUR initiative for water supply, sewage systems, and road improvements”, a Romanian newspaper, LIBERTATEA, wrote in June 2024.
Another news outlet, DIGI24, writes several informative articles about its efforts and notable achievement of the transformation of a communal pasture into an industrial area, attracting investors and boosting local revenues. This development has not only improved the local economy but also enhanced public services and infrastructure. The commune boasts modern amenities, including high-quality broadband networks, well-maintained roads, and green spaces, contributing to a higher standard of living for its locals.
Ciugud's success has made it a model for rural development in Romania, demonstrating how effective management of European funds can lead to substantial community improvements. The commune's proactive approach and commitment to progress have attracted attention both nationally and internationally, with people from various countries choosing to relocate to Ciugud, drawn by its modern infrastructure and quality of life.
One of their projects, bringing the idea of a Smart Village to life, entails effective usage of technology for the advancement of the entire commune. “A smart village is a community that develops by intelligently using local resources and technology while preserving its rural identity. We should not be afraid of technology but rather use it to benefit our communities” asserts SmartCity Romania.
Another project, Ciugud Smart School, is a modern educational facility that integrates advanced technologies to enhance the learning experience. The school was first built in 1938 and has been completely redesigned so that all children that used to go to school in the 9 villages that make up the commune, can study there. The projects included the improvement and restoration of the roof and masonry, replacement of doors and carpentry, installation of modern flooring in classrooms and hallways, and especially the implementation of smart solutions for lighting and climate control.
Notably, the school features a virtual reality laboratory, enabling students to engage in interactive lessons through VR headsets. Additionally, the school is developing an online platform that will include an electronic grade book and facilitate the exchange of educational materials, fostering improved communication between teachers and parents. Serving approximately 125 students from preparatory classes to the eighth grade, Ciugud's smart school exemplifies the commune's commitment to leveraging technology for educational advancement.
It’s incredibly soothing to research these projects and find inspiration in people’s ongoing work. It’s clear Romania has supporters and a desire to transform itself. I’m also more and more confident in people’s ability to recognise digitalisation and advanced technologies as opportunities rather than deterrents.
For more insight into Ciugud 's transformation, you might find the following sources informative:
Economie locală Ciugud – comuna campioană la atragerea fonduri europene. [Ciugud local economy - the winning commune in attracting EU funds]. Place of Publication: primariaciugud.ro
Țimonea, D. (2024). Comuna Ciugud, cheia succesului pe fonduri europene. „A fost șocant când am constatat că nu mai depinzi atât de mult de clasa politică din România”. [Ciugud Commune, the key to success with EU funds. “It was shocking to realise you are no longer so dependent on the national political class”]. Place of Publication: Liberatea.ro
(2018) Ciugud, comuna care arată mai bine decât majoritatea orașelor din țară. [Ciugud, the commune that looks better than most cities in Romania]. Place of Publication: digi24.ro
(2021) Ciugud, comuna care nu contenește să uimească. De ce se mută aici oameni veniți din Germania, Italia, Belgia. [Ciugud, the commune that doesn’t cease to amaze. Why do people from Germany, Italy, Belgium move here]. Place of Publication: digi24.ro
(2022) Ciugud - comună inteligentă. Pășunea comunală a fost transformată în „mină de aur”. [Ciugud - the intelligent commune. Public pasture transformed into a “golden mine”]. Place of Publication: Digi24HD Youtube channel
(2023) Comunicate de presă: Banii europeni schimbă vieți: județul Alba implementează 172 de proiecte europene în valoare totală de 2,1 miliarde de lei [Press Release: EU funds change lives: Alba county implements 172 EU projects for a total value of 2.1 Billion LEI]. Place of Publication: mfe.gov.ro
European Semester. Place of Publication: commission.europa.eu
European Semester documents for Romania. Place of Publication: commission.europa.eu
