SIMILAR ARTICLES

Romania’s budget issue: toxic mix of “American” revenues and “European” spending

Relatively recently joined the functional market economies club, although it has multiple pending development (not just economic) issues, Romania looked around and chose a poisonous… Mai mult

Spectacular GDP growth in Q1: 5%, in the context of rhythm decline in manufacturing to just 1.2%. Dilemmas

Gross Domestic Product for the first quarter of 2019 increased by 5% in real terms compared to the same period of the previous year (5.1%… Mai mult

Equation of public employees in Romania’s expenses compared to EU

Simply put, data recorded over time in the monthly budget implementation published by the Ministry of Finance indicate a share of staff costs in total… Mai mult

Foreign groups of enterprises in Romania and areas where they operate. Hierarchy changes

Germany (16.9%), France (11.7%) and Italy (9.5%) are the countries with the largest share in Romania’s economy by the number of employees in 80,905 groups… Mai mult

Budget implementation in Q1, short and simple: wages and social spending up, general and local investments down, co-financing for projects implemented with European money down

The general consolidated budget recorded, after the first two months of 2019, a deficit of about RON 5.5 billion, equivalent to 0.54% of the GDP… Mai mult

Cronicile
Cronicile

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

4.2%, from 3%: BNR has increased inflation forecast for 2019

The National Bank increased the inflation forecast for 2019 by 1.2 percentage points, from 3% to 4.2%. Also, the forecast for 2020 goes up by… Mai mult

Emergency procedure at European Court of Justice for Romania’s question: Are MCV recommendations mandatory?

The Court of Justice of the European Union (CJEU) has decided that Bihor Court’s request to be discussed under the emergency procedure, which is a… Mai mult

Government decides to increase external borrowing ceiling by EUR 4bn. It has consumed program resources for two years

The Government's agenda for Wednesday also includes the draft decision to increase the foreign loans ceiling for 2019 and 2020 by EUR 4 billion, up… Mai mult

Preparations for Summit in Sibiu - European Commission’s recommendations for EU's strategic agenda

On Tuesday, the European Commission presented a series of policy recommendations on how Europe can shape its future within an increasingly uncertain and multipolar world.… Mai mult

Meeting between Prime Minister Viorica Dancila and Chinese Prime Minister Li Keqiang: talks on a possible involvement of Chinese companies in PPP projects in Romania

On Friday, Prime Minister Viorica Dancila had a meeting with Chinese Prime Minister Li Keqiang, during which she stated her interest in involving Chinese companies… Mai mult

So-called "Belina Law" was adopted. Opposition will refer CCR: it turns Belina Island into a fiscal paradise

The Chamber of Deputies adopted on Tuesday the bill that provides for a derogating tax regime, such as tax exemptions or reductions, for land and… Mai mult

Deveselu shield is undergoing an upgrade process; the US provides alternative defence capabilities with THAAD systems

Aegis Ashore anti-missile system installed at Deveselu 99 Military Base will go in the next period through a previously planned upgrade process, the MApN announced… Mai mult

How 2019 began: Investments, allocations by 78.5% lower than the same period of 2018. 21% decrease in co-financing for attracting European funds

The consolidated general budget recorded a deficit of 0.5% of GDP in the first two months of 2019 namely RON 5.2 billion, a "performance" only… Mai mult

Romania's GDP exceeded Portugal’s in 2018: which has a population two times lower and a GDP/inhabitant twice as high

Romania's economy exceeded, at current prices in euros, Portugal's economy in 2018, a country with a population and a surface two times smaller as Romania.… Mai mult

Document / Draft to amend "Greed Ordinance"

The Ministry of Public Finance published Tuesday evening, a day and a half before the approval in the Government, the draft OUG that amends the… Mai mult

The two OUGs on judiciary for the three files are ready and submitted to Government

The Justice Ministry has prepared the two OUG drafts for which the coalition has put much pressure on the Justice Minister Tudorel Toader before granting… Mai mult

ECOFIN / Tax havens list has been updated. Politico: Eugen Teodorovici took EU Finance Ministers by surprise

Finance Ministers of the EU voted on Tuesday at the third meeting of the Council for Economic and Financial Affairs (ECOFIN) chaired by Romania, the… Mai mult

March 15, 15:00, for 15 minutes: Romania really wants highways!

Dozens of companies, mayoralties, sports teams, public figures, organizations and many ordinary people joined the protest "Romania wants motorways". Of course, the country did not… Mai mult

Facebook has removed 30 pages and PSD propaganda accounts in Romania

Facebook announced Thursday that it has closed hundreds of false accounts promoting false content in the UK and in Romania and this is the first… Mai mult

Laura Kovesi, indicted in a second case opened by Magistrates' Investigation Section

Laura Codruta Kovesi was indicted on Thursday in a second case. The section for investigating the crimes committed by magistrates accused her of having led… Mai mult