fbpx Modifica setari cookieuri


Budget implementation on S1 2020 – a comparative approach related to 2019

The general consolidated budget registered in the first half of the current year a deficit of about RON 45 billion, equivalent to 4.2% of the… Mai mult

Siegfried Muresan: The EU is considering the possibility to introduce several types of taxes. The only one on which there is agreement is the one on plastic

At the European level, there is an agreement to introduce a “modest” tax on disposable plastic, a first source of income to support the repayment… Mai mult

Long-term interest rate fell below 4%. However, a courageous change of economic vision would be required

Long-term interest rate for Romania fell by almost one percentage point in just two months, according to data released by Eurostat. After increasing up to… Mai mult

Mazars study: Romanian tax system versus Covid-19 crisis. Development bases have been created

Budgetary and institutions’ operational constraints generated by the pandemic have subjected the Romanian tax system to significant tensions, which proved its limits, notes the international… Mai mult

The sex of angels and the sex of Europe. On the para-ideological enemy at the heart of the EU

Some facts – or what we call “Hypothesis” in Mathematics  *  What EU is in the global economic and technological competition *  The sex of… Mai mult

Conditions and mechanism for accessing financing from recovery fund: supervision, indicators, approvals, diplomacy

de Victor Bratu , 7.6.2020

The European Commission is doubling its efforts to show that Europe has learned the lessons of the past and will avoid now, after the “Great Isolation”, the mistakes made during the “Great Recession”.

According to Euractiv, proposals to exit the coronavirus crisis bear no resemblance to the plan put in place after the 2007-2008 financial crisis when the Commission’s austerity insistence – the way imposed to balance public accounts – led to a sharp recession in 2012.

Conditionalities attached to the economic recovery fund, with a proposed budget of 750 billion – partly grants, partly loans – indicate that the EU is willing to give up, even temporarily, the strict accounting approach applied, for example, in the case of Greece’s economic rescue.

However: The Commission is developing a mechanism in which, in exchange for the access to funds, member states are pushed to the path of adapting to Green Deal and Digital Agenda paradigms.

In order to win the support of the group of 4 “austere” countries (Netherlands, Austria, Denmark and Sweden), Ursula von der Leyen said that this fund will not be a “Swedish buffet” where there are European funds on the table.

The new investment Bible: recommendations of the European Semester

According to the plan announced by the Commission, member states have limited freedom to choose what investments to make and what reforms to implement to save their economies, an important criterion for Brussels being that of actions that do not only save but transform an economy.

First, member states would have to justify to the Commission how national rescue plans are in line with the specific challenges and priorities identified by the European Semester, an EU mechanism for coordinating national economies, which contains though recommendations that go beyond the economic area.

European Commission Vice-President Valdis Dombrovskis announced that, besides complying with country recommendations, other indicators will also need to be followed by member states, such as the contribution of the project for which funding is requested to potential growth, job creation, social and territorial cohesion.

Secondly, the Commission has indicated its intention to “cooperate” with member states in the process of drawing up investment and reform plans, so as to eliminate the “risk of rejection” of projects on the grounds of non-compliance with certain criteria, as has been the case so far with insufficiently substantiated national projects coming to the Commission, especially from the East.

In an interview with Euractiv, Budget Commissioner Johannes Hahn said that under the new project development structure he is not worried that national plans could be rejected by the Commission, but he has concerns about how member states would implement the approved projects.

Complicated project approval mechanism: EU 27 approves national plans

Johannes Hahn said that the EU should ensure that economic recovery funds are spent according to the approved plans and indicators set for the release of funding instalments are actually met.

Consequently, the Commission, to the surprise of all experts, proposes that member states are involved in approving the national plans, following a procedure which is vague for now – “comitology”.

In principle, the EU-27 would issue a mandatory opinion to the Commission on the validation of each national investment and reform plan, including targets and indicators, for accessing the funds.

This system proposed by the Commission will certainly be one of the hotspots in the negotiations – the measure, seen as precautionary from a Northern European perspective, is considered unfair, even discriminatory, in the South and East.

However, the proposed system for approving the national plans is not discretionary, as the approval would be reached based on a qualified majority – at least 15 member states, representing at least 65% of the EU population.

It is a solution of relative balance given that the states which are most likely to be against more “relaxed” plans are not at the top of the rankings in terms of population, so they could very easily find themselves having their own plans boycotted by the states on which they want to impose their will. That’s true Austria, the Netherlands, Denmark and Sweden are compensating the smaller population with an efficient system of alliances at the European level…

In addition, the pressure from the Commission to commit at least 60% of the funds in the first two years after the initiative is launched, in order to urgently stimulate European economies, does not recommend turning each national plan into an endless negotiation.

Vice-President Dombrovskis said he does not expect the “micromanagement” of national plans, mentioning that member states cannot impose on another member state the requirement to reform national labour and pension systems in exchange for the access to money.

Valdis Dombrovskis stated that the procedure is intended to ensure “consistency” between investment and reform plans so that each member state is treated fairly.

Mergeți în homepage ›

Publicat la data de 7.6.2020

Lăsați un comentariu


New Renault boss: “Dacia is a miracle. It's time for the brand to flourish"

Luca de Meo (foto), the new general manager (CEO) of Renault group, considers that Dacia project proved to be a miracle and that no one… Mai mult

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica's Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

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