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

Romanian Leu of 2019: Depreciation rate depends on budget credibility and seriousness

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

Romania and energy: Position in European context

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

Intense M&A activity in 2018 in Romania – Deloitte analysis

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


European mechanism “Money only for the rule of law”: Commission’s radical initiative to “strengthen correlation between EU funds and rule of law”

de Victor Bratu , 7.5.2018

The draft 2021-2027 multiannual budget of the European Union is accompanied by a radical Commission’s initiative on “Strengthening the correlation between EU funds and the rule of law”.

Translated in common language, the Commission formulated on Wednesday the principles of a mechanism based on which to cut European funding for those member states that do not respect the “rule of law” principle.

The new framework would obviously be applied starting with the next financial year.

Very important: The so-called “Financial Supervisory Mechanism” is a separate proposal from the draft multiannual budget – which requires the unanimous approval of the member states in order to be adopted, so it does NOT need unanimity to be put into operation.

Present at the European Parliament, where the draft budget was discussed before the public presentation, President Jean Claude Juncker assured MEPs that the proposal is “about respecting the rule of law, which is an indispensable condition for the sound financial management,” and does not target any particular state, but will be applied across the Union.

It is clear, however, that once adopted, the mechanism will put pressure first on Hungary and Poland, countries harshly criticized lately for their internal slippages, but also on Romania, which has already come under the spotlight because of the changes in the laws of the judiciary.

Details of the mechanism

The newly proposed mechanism would allow the EU to suspend, reduce or restrict access to European funding in a manner “proportionate to nature, gravity or areas affected by the deficiencies of the rule of law.”

A possible decision in this respect against a member state should be proposed by the Commission and adopted by the Council by the so-called reverse vote of the qualified majority. That is, the proposal is adopted unless a qualified majority is against it.

In the Council, the qualified majority is voted by at least 55% of the member states (16 out of 27), representing at least 65% of the EU population.

This decision can be invoked when, from the rule of law point of view, a generalized deficiency threatens:

  • The proper functioning of the authorities implementing the European Union budget
  • the correct functioning of the investigation and prosecution against budget-related fraud and corruption acts
  • efficient judicial control run by independent courts
  • prevention and punishment of fraud, corruption or other breaches of the EU budget legislation
  • efficient and timely cooperation with the European Anti-Fraud Office and the European Prosecutor’s Office

The new rules would be applied in relation to:

  • all European funds under common administration
  • funds under direct and indirect management, where the financial beneficiary is a government entity (national, regional, local authority, public body or private organization entrusted with a public service mission)
Mergeți în homepage ›

Publicat la data de 7.5.2018

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

World Bank lowered prospects on Romania's economic growth for 2019 and 2020

  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

State is borrowing at increasingly higher costs - government bond yield reached 5.33% per year

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

Iasi - Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

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

FIC: Amendments on Criminal Codes expose business environment to abuses from civil servants

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

Sovereign Fund gets legal base. Details announced by Minister Teodorovici

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

Ford is looking for 1,700 employees to produce EcoSport SUV model

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

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

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

Ministry of Finance planned loans of RON 4.74 billion in November. Costs are increasing

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