SIMILAR ARTICLES

Alan Duncan / We cannot allow our societies to continue to be attacked and undermined

Global security is under threat. The system of international rules that has kept our citizens safe and our societies prosperous since the end of the Second… Mai mult

Q2 / Average monthly income per capita in Romania has risen to nearly RON 1,600: Changes in redistribution of family budget

Data published by INS for the second quarter of 2018 show that Romanians’ monthly incomes have reached nearly RON 1,600 per person. They were RON… Mai mult

Current account deficit flickers to red on dashboard

According to the data released by Eurostat, Romania’s current account deficit exceeded, in the second quarter of the year, the threshold of five percentage points… Mai mult

Strategic chemical industry: Romania, on top in import increase and ranking last in EU in terms of increase in exports outside single market

Data published by Eurostat show that Romania recorded the second highest annual growth rate in imports of non-EU chemicals from 2007 to 2017 (13.1% per… Mai mult

Economic growth in the pocket: Current accounts vs. saving accounts – 64% to 4.5%

  Rising incomes have fuelled consumption and, implicitly, the economic growth in recent years, but not the savings. Although a large proportion of the population… Mai mult

Cohesion funds: Romania, Greece and Bulgaria, only ones in EU with allocations increased by 8%. Other side of coin: Commission links access to money with economic and structural reforms

de Victor Bratu , 3.6.2018

 

Brussels has decided to reform the way of spending one of the largest “slices” of the Community budget – cohesion policies (about one-third of the budget).

The Commission published on Tuesday the long-term plans for this chapter aimed at reducing regional disparities registered across the continent. The official announcements (HERE-LINK) do not immediately show the impact that the new vision will produce.

Some member states have already stated that the proposal is unacceptable, a sign that negotiations of member states and the Parliament with the Commission’s representatives will be tough and most likely last, in the most fortunate case, until the next European Parliament elections. President Juncker said he wants the new multiannual budget voted before these elections.

In the following, some information aggregated by Politico about the effects of those announced on Tuesday by Commissioner Jyrki Katainen, Vice-President of the Commission in charge of jobs, development, investment and competitiveness:

Bittersweet moment of South

At first glance, Greece, Italy and Spain have reasons for joy – if global cohesion policy allocations decrease, allocations for Greece will grow by 8% in the future multiannual budget, for Italy by 6.4% and for Spain by 5%.

But there are also certain conditions: the Commission proposes to link the allocation of these funds to the implementation of economic and structural reforms.

It is not very clear how Brussels can impose this link or whether states can be “sanctioned” under the pretext of poor economic management.

And not the entire South will enjoy the perspective of supplementing the funds – there are states that have been heavily affected by the crisis and managed to recover economically, and that is exactly why they are not eligible for funds. It is Portugal’s case.

Part of the East pays the price of success

The Center and the East of Europe are going through a good economic period, and that means they will receive fewer cohesion funds.

.

Poland, Slovakia, Hungary and the Czech Republic have allocations reduced by a quarter. Estonia and Lithuania have smaller allocations by 24%.

Poor countries – Romania and Bulgaria – have relatively modest additional allocations: plus 8%. But the increase in allocations will probably not change, at least in Romania’s case(, the absorption capacity of these funds.

The drastic cuts in the allocations of cohesion fund will certainly affect the six eastern or central European states. Even if their saving process is going well, public investment is likely to no longer reach levels registered in previous years. A conclusive example: 60% of public investment in Poland was based on cohesion funds.

It is expected that such a measure will also lead to a radicalization of the speech in the forthcoming European Parliament election campaign in countries such as Hungary or Poland, which already have repeated confrontations with Brussels.

Cohesion policies or just politics?

Critics of the proposals formulated Tuesday in Brussels complain that rich states are not too much affected by the new plan. France and the East of Germany are among beneficiaries and therefore the following question arises: when money is so limited, why do you also help countries that can finance by themselves their development projects from national budgets?

The Commission says, however, that one can not ask our net contributors to give up their share of the Community budget.

The signal that it is not the only reason is given by the change in the way to determine the regions’ eligibility for cohesion funds. It is about the so-called “transition regions”, which are eligible for financing development projects, and which are now defined as areas where GDP per capita is between 75 and 90% of the EU average, a range that changes to 75 -100% of the EU average.

As a result, many regions in France will no longer be considered “developed”, but “in transition”, therefore eligible for funding. France will lose only 5.4% of the actual allocation in the next multiannual budget.

Regions need to “get green”

Two of the major directions of the cohesion funds – the European Regional Development Fund and the Cohesion Fund – will have strict criteria on what type of programs they will support, and ecology will play a very important role.

The Commission’s proposal is that 30% of the funds allocated to underdeveloped or transition regions will have to be spent on “promoting a greener, less carbon-emissions Europe”, and another 25% of the funds will be focused on environmental projects.

Mergeți în homepage ›

Publicat la data de 3.6.2018

Lăsați un comentariu


NEWS

Cluj-Napoca - only city in Romania that receives European funds for innovative projects

Only Cluj-Napoca is among the 22 European cities that will receive financing from the European Regional Development Fund (FEDR) for innovative solutions in addressing urban… Mai mult

Prime Minister Dancila dismissed 13 of 15 civil society representatives from Economic and Social Council. They were blocking legislation that did not gathered all opinions

Prime Minister Viorica Dancila has replaced 13 of the 15 civil society representatives in the Economic and Social Council (CES). Following a decision published on… Mai mult

West Quadrilateral / Four counties joined to directly access European money for major infrastructure projects

From right to left: Gheorghe Falca, Nicolae Robu, Ilie Bolojan. Emil Boc, Mayor of Cluj Napoca, misses Four mayors from the West of the country… Mai mult

Chamber of Deputies / PSD loses UDMR’s support for amending Offshore Law, draft returns to committees for a week

The plenum of the Chamber of Deputies decided on Wednesday to resend the Offshore Law to committees after a seemingly surprising request of UDMR leader… Mai mult

Government amended insolvency law. Guarantees given by Minister Teodorovici

The Government adopted on Thursday the draft Emergency Ordinance for amending and supplementing legislation in the field of insolvency, which provides among other things for… Mai mult

Romania ranked 7th in EU in terms of renewable electricity

Unlike the vast majority of the economic areas, in which we are at the bottom of the European ranking, Romania succeeded to rank 7th by… Mai mult

Resounding failure of PSD lobbying action in Brussels

There are clear signs that the lobbying action launched by the ruling coalition in Brussels in favour of the government in Bucharest will end with… Mai mult

MFP: Romania does not endorse a separate budget for Eurozone and rejects the idea of ​​taxing financial transactions

Romania does not endorse a separate budget for Eurozone and rejects the idea of taxing financial transactions, Minister of Public Finance Eugen Teodorovici said after… Mai mult

Finance Ministry wants to change rules for insolvency: state could also register claims after procedure is launched

Companies’ possibility to avoid paying creditors (and in particular the payment of tax receivables) simply by declaring their insolvency would be drastically limited, according to… Mai mult

Phil Hogan: Swine fever in Romania has an impact on neighbouring countries and EU trade in pigs

Prime Minister Viorica Dancila, European Commissioner Phil Hogan and Agriculture Minister Petre Daea The swine fever epidemics in Romania has an impact on neighbouring countries,… Mai mult

Infrastructure projects lost EUR 41.5 million following budget amendment. In what projects cuts have been made

Despite the assurances that Dancila government is concerned and intensely working on the road infrastructure projects, at the budget amendment the Transport Ministry has cut… Mai mult

European Parliament have decided to adopt in October a resolution on the rule of law in Romania

Leaders of the political groups in the European Parliament have decided to adopt in October a resolution on the rule of law in Romania. The… Mai mult

"Romania's buffers have deteriorated, the country is less prepared for a negative shock" - IMF will reduce economic growth estimate

Romania will be less prepared if the economy is hit by a negative shock, as the structural deficit has been deteriorated - IMF representative for… Mai mult

Premiere: CSAT asks Finance Ministry to amend amendment - session suspended until Government comes with a draft that does not affect budgets of secret services

President Klaus Iohannis suspended on Tuesday the CSAT meeting for discussing the budget amendment, as there was no consensus on the budgets of institutions from… Mai mult