SIMILAR ARTICLES

Two charts and scorched-earth policy: Shock of sudden increase in pensions. Can we handle it?

Not in many words, just the explanations for the charts below: Let’s take a look at the figures. In the explanatory memoranda of Law 127/2019… Mai mult

Historical record for trade deficit, in July 2019. We also moved to monthly deficit both in transport machinery and equipment

The trade deficit in July 2019 rose sharply to the historical record of EUR 1,755.5 million, by 38% more than in the same month of… Mai mult

Denmark, a country almost entirely digital. Interview with Rikke Zeberg, director general of the Danish Agency for Digitisation

First steps towards digitalization were made in the 60s. More recently, twelve years ago, the digital ID was introduced for all the citizens, for free.… Mai mult

Romanian companies keep up with state: investments decline by half compared to 2009

Both public and companies’ long-term investments halved in 2018 compared to 2009. This is proof that without state investments, the private sector does not have… Mai mult

Increasing trade deficit, in an increasingly difficult European context: in all other states it is the opposite

Romania is the only country in the region where results in the first half of this year in foreign trade worsened, according to data published… Mai mult

Cronicile

Big budget issue: How we consumed European money in 2017

de Marin Pana , 27.11.2017

According to data released by the Ministry of Finance, Romania received only EUR 3.05 billion in the first three quarters of 2017, of which EUR 3.04 billion for the 2014-2020 financial framework and the remaining EUR 9.67 million are arrears from the 2007-2013 financial framework.

The amount is much lower than last year’s level, 41% if reported to the amount of EUR 7.36 billion recorded in 2016.

Obviously, it is impossible to recover the difference of 59% in the last quarter of the year, which will deprive the public budget of about three billion euros of European money (if we extrapolate the amounts received so far).

It is by far the main problem of budget execution in 2017, where the planned deficit is 2.96% of GDP or EUR 5.38 billion at the currently estimated GDP.

The European money could have come for free but for clear development projects, drafted according to the European norms and co-financed by the state budget.

Collecting this money, even at the 2016 level of EUR 7.4 billion (otherwise criticized at that time), would have even allowed for the budget outturn to meet the famous MTO (mid-term objective or financial stability mid-term objective of -1% of GDP assumed by Romania).

*

  • Evolution of financial flows between Romania and EU at 30.09.2017
  • Year
  • Amounts received from the EU budget
  • Amounts paid to the EU budget
  • Flow balance with the EU budget
  • – share of GDP
  • * first three quarters

*

For received and paid amounts, we have the amounts showed separately in the two EU financial periods, 2007 – 2013 and 2014 – 2020 respectively. The balance, in terms of importance for the Romanian economy, resulted from the difference between the total collected money and the paid money related to the GDP that Romania obtained since 2010.

Looking back, we can see that the public finances’ dependence on the amounts received from the EU budget has rapidly increased. A significant leap took place in 2013, in 2015 and 2016, the EU money accounted for more than three percent of the national GDP.

In 2017, the “connection” to the 2014-2020 budget period has been made too slowly to compensate the inherent fall in the funds allocated in the previous period, 2007 – 2013, once the important resource resulted from the payment rule of N + 2 / N + 3 years after the extended payment expired ended abruptly.

*

  • Amounts received from the EU corresponding to the multiannual financial frameworks for 2007-2013 and 2014-2020
  • Year

*

The embarrassing start from 2014-2015 was concealed in 2016 precisely by the delay in how we moved until 2013. Prioritizing the absorption of the European funds as a matter of extreme urgency should have been natural in 2017 but this did not happen, whereupon the collapse of the money balance with the EU budget.

Practically (with the excuse, otherwise valid, that we are not to blame but to “difficult legacy” and in an electoral/post-electoral period, with its specific requirements), the tactics of risky income allocations has been chosen, with short-term benefits instead of a strategic organisation of the country development in the long run, which would have involved moderation and sustainability.

We consumed money that could have brought us European funds

Instead of moving quickly to put money out of our budget to amplify the effect of the European funds about 7 times (usually the national contribution is 15%) and develop faster the infrastructure, with roads, schools, hospitals and other similar things necessary in a civilized country, we sent our money to consumption.

Even the amounts received rather came automatically, through the already allocated amounts of the European Agricultural Guarantee Fund, which represented most of the money inflow to the country.

Unfortunately, the monumental counter-performance officially registered is not a central topic for public debate, as it should be normal.

*

Amounts received from the EU budget in Q1 2017 under the financial 2014-2020 framework (million euros)

Total amounts received

Structural and cohesion funds

Funds for rural development and fishery

European Agricultural Guarantee Fund

Other (post-accession)

*

The big problem lies with the structural and cohesion funds, less than 10% of the total, which is allocated to clear projects that are in line with the European requirements.

As we joined the EU and paid considerable amounts to the common budget (we are absolutely on track with the payment – the EUR 1.13 billion already paid in the first three quarters head exactly to the billion and a half paid last year), we should have taken care of maintaining a high rate of absorption of the funds made available.

Mergeți în homepage ›

Publicat la data de 27.11.2017

Lăsați un comentariu


NEWS

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult

"At a distance from books": 85,000 teachers (one third of educational staff) are graduates of distance learning

Approximately 85,000 teachers are graduates of distance learning (ID) programs, Education Minister Ecaterina Andronescu said at a meeting with school inspectors from Caras-Severin County. The… Mai mult