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| Romania and EU Funds |
| (2011-07-15) |
| Last updated: 2011-07-18 14:38 EET |
The Romanian PM Emil Boc has also spelled out that one of the sanctions inflicted on those who benefit from EU funded projects but do not observe the contract stipulations, refers to cutting off the funds altogether. But to avoid losing the money, the government is looking for ways to redirect it to other projects. PM Emil Boc explained that the decision was prompted by the very low level of EU reimbursements for projects conducted so far. Data show that the amount of EU funds that went to Romania totaled around 650 million euros at the end of last month, tantamount to 3% of the total of 20 billion euros allotted for the 2007-2013 period. The absorption rate of EU funds is also a criterion for reshuffling the government, and the activity of each minister will be assessed in the coming period.
The transport minister, Anca Boagiu, on Thursday submitted a first request to verify all EU contracts benefiting from EU funding. Verification will be conducted by the Management Authority within the Ministry of Transport which is expected to draft a report with suggestions and conclusions after verification next week. In turn, the Romanian Foreign Minister, Teodor Baconschi, has underscored the importance of using EU funds. The Romanian official believes that doubling the absorption rate of EU funds could be a reasonable objective, arguing that although the absorption rate has improved, it has not reached a satisfactory level.
To this end, Baconschi considers the setting up of a special ministry meant to deal with the EU funds absorption: “It may not be the answer to all our problems, but it is definitely a better means of coordinating absorption efforts. We won’t move from a 20% absorption rate to a 60% rate in the case of some ministries, but it’s important to show that we have the capacity to increase our absorption rate by at least the same amount. I believe the EU fund absorption rate and the current status of projects that are part of operational programmes are objective performance criteria for assessing the ministers who handle EU funds”.
The Institute for Public Policies has revealed that authorities are deliberately misleading us with respect to Romania’s EU funds absorption rate. A communiqué of the Institute shows that there are inconsistencies between official figures reported by various state institutions, which is telling of the distorted and inaccurate image of EU funds absorption. PM Emil Boc has promised Romanian businesspeople he will seek to simplify procedures for establishing a company and will pass the law on public-private partnerships, which will bring more investments in Romania and facilitate access of small and medium-sized enterprises to investment projects.
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