SIMILAR ARTICLES

BNR – Risk map: Credit default risk got right to “high” level top position

The deterioration of investors’ confidence in emerging economies and the default risk of loans to companies and population are the biggest risks to financial stability… Mai mult

A (new) paradox: Public debt decreases as a share of GDP – cost increases with interest to what we borrow. Remarks

Although medium- and long-term foreign debt (DETML) has declined steadily over the last four years related to GDP, the amount paid for this debt has… Mai mult

Current account deficit – 15% higher after first four months of 2018

The current account of the balance of payments registered a deficit of EUR 2,053 million in the first four months of this year, about 15%… Mai mult

Sovereign Fund has been voted: Mechanism to remove “states’ pearls” from public control

The voting machine of the Chamber of Deputies (decision chamber) approved on Wednesday – 174 votes for, 98 against and 3 abstentions – the Law… Mai mult

Increase of labour cost, triple compared to GDP growth

The hourly labour cost increased in the first quarter of 2018 by 12.72% compared to the same period in 2017, according to the data announced… Mai mult

We and Juncker Plan: Bulgaria – 3rd position, Romania – 23rd position. How other neighbours are doing

de Adrian N Ionescu , 11.6.2018

The value and economic impact of the Romanian projects to attract resources from the so-called “Juncker Plan” of European investments are much lower, compared to those of the countries from Central and Eastern Europe, according to the European Commission’s reports made in May.

Several projects from Central and Eastern Europe are relevant to the use of resources provided by the Juncker Plan, through the European Investment Fund (EIF) and the European Investment Bank (EIB):

  • Slovakia will build the ring road of Bratislava capital city. (Romania is far from succeeding the same for Bucharest).
  • Poland will develop a regional hospital, improve and expand its electricity grid and build housing facilities for citizens with low incomes. (Romania has a new law on the public-private partnership, which would also be used for regional hospitals).
  • Bulgaria will develop its business in the agro-veterinary field through the research project of a company with international exposure, including on animal vaccines. (In Romania, Cantacuzino Institute is still undergoing restructuring).
  • Approved hospital construction projects in developed countries such as Austria, the Netherlands, Italy, and the United Kingdom are also remarkable.
  • Romania’s most remarkable project is one that is part of a larger, pan-European one: 40% of the Romanian segment of BRUA gas pipeline. Pressures from the European Commission will be significant for Transgaz to properly prepare the application file.

Share of projects in GDP: Bulgaria – 3rd position, Romania – 23rd position

The recent type of Romania’s economic growth (GDP) proves to be fragile also from the point of view of the capacity of using resources made available by Juncker Plan and provided by the European Investment Fund (EIF) and the European Investment Bank (EIB).

Our country also ranks 23rd in the top of project values, by the share of GDP of the investments provided by EIF and EIB, according to data released by the European Commission in May.

Bulgaria, Croatia and Slovenia have a lower economic power than Romania (according to the nominal GDP, estimated for 2018 by the IMF at about a quarter of Romania’s GDP), but rank 3rd, 13th and 14th, respectively.

Hungary ranks 19th, although its nominal GDP is 67% of Romania’s GDP.

*

  • Ranking of investment projects financed by EIF and EIB, as a share of GDP

*

The capacity of Romania’s authorities and companies to use the Juncker plan funds proves therefore much weaker than expected based on its economic growth if this growth were healthy.

What “Juncker Plan” is

The Investment plan for Europe initiated by EC President Jean Claude-Juncker four years ago and launched in May 2015, is the response of the European executive to the investment decline following the economic crisis.

The plan is based on 3 pillars, according to CE:

  • The European Fund for Strategic Investments (EFSI), which provides guarantees for the European Investment Bank (EIB) loans. In September 2016, there has been decided an extension from three to five years, until 2020, and an extension of the investment target from EUR 315 to 500 billion.
  • The European technical assistance platform and the European portal for investment projects, in association with the EIB Group.
  • Improvement of the business environment by removing regulatory barriers to investment.

The operating mechanism is the same as originally set (even if the figures below were not updated after the investment targets have increased).

How Juncker plan operates through the European Investment Fund, the European Investment Bank (EIB) and the European Investment Fund (EIF)

We and the others

Romania has gained its 23th position among the 28 EU member states, with a financing approved by EFSI of EUR 361 million, which can raise total project investment to a little over EUR 1.3 billion.

Besides Transgaz – BRUA project, Romanian companies that stand out because they succeeded to sign with EFSI and the EIB for financings under the Juncker plan are:

  • Unirea Medical Center, which received a grant from the EFSI of EUR 15 million and will invest a total of EUR 57 million in expanding Regina Maria‘s private health network.
  • GreenFiber International SA, with an EUR 7.5 million loan (EFSI), to finance a recycling project that facilitates the transition to a circular economy. Total investment planned is EUR 20 million.
  • Agricover, an IFN with expertise in loans for agriculture, will receive EUR 15 million from the EFSI (Tranche 1) to further finance SMEs in the agricultural sector. The total investment planned is EUR 54 million.
  • Two projects have also been approved: the National Radiocommunications Company for the transition to a digital broadcasting infrastructure, amounting to EUR 10 million, and a research project, with no details, of the White Goods Factory.

As in most countries, Romanian banks also access EIF funds to finance SMEs.

The lenders in Romania have 5 financing agreements amounting to EUR 83 million and total investments would amount to EUR 471 million, for about 2,599 small firms.

Of all the projects of other emerging EU countries, we can also note:

Bulgaria

  • Company Biovet will be funded for developing the production, including of animal vaccines, with EUR 100 million (the same amount as the one received by Transgaz from EFSI for BRUA gas pipeline).
  • Oliva, a company that manufactures sunflower oil, will receive EUR 31 million to expand its production capacity. Total investments supported this way will be EUR 62 million.
  • Financial intermediaries have twice as many agreements as those in Romania. They receive financing of EUR 70 million to support an investment of EUR 930 million in 6,033 SMEs, including start-ups.

Slovakia

  • The Slovak public transport infrastructure institution (IES) will receive EUR 426 million for the plan, construction and operation of a 27 km section of the Bratislava motorway ring road. The total investment planned is estimated at EUR 639 million.
  • Five loan agreements with financial intermediaries, of EUR 37 million, for crediting 7,621 SMEs with EUR 267 million.

Croatia

  • The national energy company Hrvatska Elektroprivreda DD will receive EUR 50 million to build a capacity for electricity and heat cogeneration for Zagreb capital city. Total investment will be EUR 195 million.
  • The project for developing tourism in the Istria peninsula from the Adriatic Sea will receive EUR 16 million.

Poland

A selection of Polish projects with already signed financing agreements looks like this:

Mergeți în homepage ›

Publicat la data de 11.6.2018

Lăsați un comentariu


NEWS

Subsidy of RON 900/month for employing a graduate based on contracts of indefinite duration

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

National Bank of Romania wants to lower indebtedness limit in granting loans to individuals

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

High impact provisions: Senate has adopted PSD-ALDE amendments to the Code of Criminal Procedure

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

World Bank: Romania's economy could grow by 5.1% in 2018

Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult

Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network

The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult

Energy productivity: Romania goes up within Central European group

Romania reached 56% of the EU's average energy productivity in 2016, compared to only 43% in the year of the accession, according to data released… Mai mult

Document / Public procurement - Changes made by OUG: how to calculate guarantees, values over which contract must be publicly announced, how to change contract without resuming procedures

Under the promise of reducing bureaucracy and increasing efficiency in the public procurement procedure, the Government approved on Thursday an emergency ordinance that brings essential… Mai mult

AmCham: Romania should have a national investment plan. Four major areas with competitive potential

The consistency of the measures needed to encourage public and private investment, as well as proposals for the development of the four major areas considered… Mai mult

"We are pulling ourselves out of maps!": Business community’s solutions for infrastructure development

In the medium and long term, companies in Romania lose business because of disarticulated infrastructure; the country overall loses new investment, the state budget loses… Mai mult

New Romania’s Agent at the EU Court of Justice: 32 years old, failed exams, a person supported by Olguta Vasilescu

The government agent at the EU Court of Justice, Razvan Horatiu Radu, was replaced by the Government by a decision of Prime Minister Viorica Dancila… Mai mult

European Commission urges Government to "fully and immediately" reimburse car taxes

The European Commission asks Romania to urgently align the system of taxes collected on the car registration to the European one. The request is announced… Mai mult

CCR President in a visit to Russia, despite that Ministry of Foreign Affairs has recommended not to make this visit

CCR President Valer Dorneanu is in Russia today, where he attends the Sankt Petersburg International Legal Forum, despite that MAE has recommended not to make… Mai mult

List of black payments / Corruption in health sectors: Bribes - 25% of contract value, higher than in other fields

Romania is the European country with the lowest spending in the health sector. However, DNA statistics show that the bribe in this field is higher… Mai mult