Labour cost: steepest and largest increase in the EU. And mostly concentrated on non-business sector
Romania recorded in the first quarter of 2018 the highest labour cost increase among all EU member states, according to data released by Eurostat. With… Mai mult›
Company financing: Firms’ aversion to credit – at high levels. Most favourite banking product – account overdraft
The rise in interest rates and fees is becoming increasingly worrying for companies and maintains companies’ aversion to banking lending at high levels, according to… Mai mult›
“Everything in One Hand” project continues: Law which pushes Court of Auditors beneath Administration’s feet – adopted
The Senate adopted on Thursday the draft amending Law 94/1992 on the organization and functioning of the Court of Auditors, which contains amendments that could… Mai mult›
Government is hardly competing with private economy on banks’ money. Which are satisfied: less work, lower risks
The volume of government credit has increased about 10 times over the last 10 years, and the share in total banking investment in Romania… Mai mult›
One third of European funds lost at whole Europe level belong to Romania: a failure of EUR 1.64 billion
de Victor Bratu , 26.3.2018
The European Commission sent on Tuesday a briefing to the European Parliament on the 2007 – 2013 Multiannual Financial Framework.
According to the Commission’s data, the total European funds automatically decommitted from the previous financial framework amounts to EUR 4.4 billion.
Of this amount, Romania marks EUR 1.64 billion, which represents over one-third of the decommitted funds.
According to the official data sent to cursdeguvernare.ro by Romanian MEP Siegfried Muresan, Romania lost:
From the Cohesion Funds
- EUR 540.5 million, for transport projects
- EUR 163.7 million, environment projects
From the Regional Development Fund
- EUR 257.8 million, Regional Development projects
- EUR 17.5 million for Economic Competitiveness projects
- EUR 123.7 million, Transport projects
- EUR 264.8 million, Environment projects
From the European Social Fund
- EUR 276.1 million projects for Human Resources
How much other former communist countries have lost
The Commission data show that all member states have decommitted amounts, but it is worth making a comparison for relevance:
- Poland registers a total of EUR 353,409 lost.
- Bulgaria has decommitted amounts of EUR 240.7 million.
- Hungary lost EUR 27.9 million.
Romania lost EUR 1.64 billion
Decommitments represent the European funds allocated to member states for the 2007-2013 financial period and lost because they could not be spent by the deadline calculated based on the formula n+ 3, which means 31 December 2016.
Important point: The situation presented by the European Commission does not take into account the so-called phasing-in procedure. For the states to not be in the situation to reimburse the European funds spent on projects that could not be completed within the deadline, for various reasons, member states have requested, and the Commission has approved the “relocation” of these projects in the next exercise.
The only condition imposed: money for “old” projects is paid from the amounts allocated in the new financial period, so states lose money in fact.
In Romania’s case, Ponta government has requested the phasing of:
- 41 Environment projects, EU funding of EUR 785.1 million
- 37 Transport projects, EU funding of EUR 2.01 billion
- 6 Competitiveness projects, EU funding of EUR 210.5 million
Pitesti-Sibiu highway could be built entirely
All governments that were in power for the 9 years when we could spend the money, that is 1 January 2007 – 31 December 2015, are more or less at fault, starting with Tariceanu government that knew since 2006 that it must prepare the launch of the authorities and management systems as well as the operational programs related to the absorption of the European funds, but was unacceptably late in starting them.
Although most of the operational programs were approved in 2007, the related management systems were only certified in 2009, which made impossible to send refund requests to the European Commission.
This resulted in an effective rate of 0% in the absorption of the structural funds for 2007 and 2008 when Calin Popescu-Tariceanu was prime minister.
The two years waisted contributed significantly to the loss of EUR 1.64 billion euros. With this money, Romania could build over 160 km of motorway or rehabilitate 150 km of railway, as it is known that Romania is today the country where trains run at the same speed as in the 19th century; with the same money, we could build 10 regional hospitals or rehabilitate 4,000 apartment blocks,” states Siegfried Muresan.
Siegfried Muresan notices though that Romanian governors’ big problem is that they do not learn lessons from the previous experience.
“We see today that the same mistakes that led to losing European funds in the previous budget exercise are made again in the management of the European funds related to the Multiannual Financial Framework 2014-2020.
Romanian Government completed the accreditation of the management authorities only in the second half of last year, three and a half years after the start of the current financial framework. Without these management authorities, we cannot attract European funds.
Besides, the ex-ante conditionalities provided for in the 2014-2020 Partnership Agreement between Romania and the European Commission are not fully met yet. The ex-ante conditionalities are measures to prepare legislation and institutions for a good use of the European funds. If we do not meet these conditionalities, the European Commission can suspend temporarily the related operational financing programs for conditionalities not fulfilled.So, we risk losing again billions of euros from the European funds allocated to Romania unless the authorities show more interest and do more to absorb this money. In addition, it is very important that, by 2020, we can prove that we can manage the absorption of the European funds.
Only this way can we convince member states which are net contributors to the EU budget that Romania deserves the same high level of the European funds beyond 2020,” says MEP Siegfried Muresan.
Lăsați un comentariu
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›
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›