70% of economic growth in first three quarters of 2018, obtained by stocks increase. Foreign exchanges pulled down GDP by 1.6 percentage points
INS recalculated GDP in the third quarter and the first three quarters of the year. Here are the growth data for the Romanian economy, updated… Mai mult›
The estimates by economists of most important banks in Romania on the depreciation of the local currency for this year range between 4.73 and 4.77… Mai mult›
Final energy consumption of Romanian industry declined by about 75% between 1990 and 2016, compared to only 25% at the EU level, according to data… Mai mult›
Crash signal in foreign trade – export coverage ratio has fallen to 2011 level. And we do not import robots
The trade deficit on November 2018 was EUR 1.567 billion, the second worst monthly performance registered last year. Worryingly, the growth rate of exports compared… Mai mult›
The Romanian mergers and acquisitions market reached nearly EUR 2 billion in 2018, according to a Deloitte Romania analysis based on public sources and transactions… 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
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.
Lăsați un comentariu
Mugur Isarescu: "Ordinance weird thing" reduces monetary policy efficiency, which will not help Government
The National Bank of Romania (BNR) will convoke the National Committee for Macro-prudential Supervision, where the Ministry of Finance will be required to clarify the… Mai mult›
Romania's economy will record an advance of 3.5% in 2019 and 3.1% in 2020, down one percentage point from June 2018 forecast, according to… Mai mult›
The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult›
The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult›
Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019
The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu's immunity only in the spring session, that… Mai mult›
Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion - announces Sorin Grindeanu (ANCOM)
The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult›
Some of the amendments to the criminal codes will generate mistrust regarding Romanian state's ability to ensure the legality, stability and predictability of business relationships… Mai mult›
European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP
Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult›
The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund. Later, after new talks with… Mai mult›
The representatives of Ford Craiova met on Wednesday with mayors of 30 localities from Dolj county in order to stimulate the attraction of 1,700 new… Mai mult›
Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field
Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult›
DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities
The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult›
Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult›
The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult›