SIMILAR ARTICLES

Document / PNL Government Program for next year

On Thursday, the appointed Prime Minister, Ludovic Orban, presented to colleagues from the National Office the document that he will submit to the Parliament, which… Mai mult

Ranking of discernment: Spectacular increase in August in the difference between Romania’s other EU countries’ borrowing costs

The long-term interest rate fell below zero in the Eurozone and dropped to only 0.28% on average at the EU level, half as compared to… Mai mult

Tourism balance drops to minus 36%, despite billions of public money that Government pumped into the market

Net costs for the state with holiday vouchers for public sector employees and the VAT cut for tourism will amount to RON 1,878 million in… Mai mult

Continuing quantitative easing: how justified is it? (III)

In this last article from the series devoted to the analysis of the quantitative easing performed by the European Central Bank (ECB), we will deal… Mai mult

Continuing quantitative easing: how justified is it? (II)

In this second article of the series dedicated to the analysis of the quantitative easing performed by the European Central Bank (ECB), we will focus… Mai mult

Cronicile

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

 

Brussels has decided to reform the way of spending one of the largest “slices” of the Community budget – cohesion policies (about one-third of the budget).

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.

Mergeți în homepage ›

Publicat la data de 3.6.2018

Lăsați un comentariu


NEWS

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

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