At the end of the first half of the year, the general consolidated budget registered a deficit of about RON 15 billion, an amount… Mai mult›
Between three and five million Romanians work and live abroad. The 2017 UN estimate, rated as optimistic by the World Bank’s Report on Diagnosis of… Mai mult›
In only one quarter: Incomes increased five times faster than GDP. For public sector employees, even faster
Data released by the INS for the first quarter of 2018 show that households’ living standards increased considerably compared to the same quarter of the… Mai mult›
It is the Administrative Code’s turn: little responsibility for local elected officials, higher power for asset disposing, privileges
The Chamber of Deputies votes the amendments to Romania’s Administrative Code on Monday, amendments that strengthen the political control over local administrations. It is expected… Mai mult›
The average gross wage announced by the INS for May 2018 was 4,512 lei, 0.4% lower than in the previous month. Net nominal average wage… 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
The Ministry of Public Finance makes a "comparative analysis" of the Tax Code and the Tax Procedure Code with a view to applying a new… Mai mult›
Romania, Hungary and Slovenia are the member states that recorded the largest increase in the share of public sector employees in the total number of… Mai mult›
Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability
Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult›
Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult›
AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy
The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult›
Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%
The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult›
The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult›
Liviu Dragnea announces a dictatorship through ordinances: "Correct procedural approach through Parliament is wrong, from the law on investment fund to laws on the judiciary. We will be firmer and more radical"
"We decided to be much firmer and more radical. My way of having a correct procedural approach in the Parliament proved wrong. In the Parliament,… Mai mult›
Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult›
The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult›
C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's
Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult›
The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult›
Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult›
RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years
Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult›