Romania is EU budget contributor for third year in a row

Of the seven operational programs through which European funds can be attracted, the program for economic competitiveness has registered the greatest absorption percentage. Over 16 percent of the funds allocated for this program reached beneficiaries, who are mainly small and medium-sized enterprises. At the opposite end, the lowest absorption rate, of close to zero, was registered by programs destined for local authorities. These are the main conclusions based on data centralized by the Authority Structural Instrument Coordination (ACIS) of the Ministry of Finance.

“Nothing was done in 2007. It was not until 2008 that management authorities were accredited by Brussels, programs were launched, and the first projects began to be submitted,” Radu Limpede, European fund consultant, said. Data provided by ACIS indicates that the operational program for enhancing competitiveness has an absorption rate of 16.5 percent, double the 7.78 percent average. Next come the environment (13.26 percent) and regional (8.46 percent) programs, with the remaining programs registering an absorption rate of less than five percent. “Judging exclusively from amounts allocated, Romania can be considered a net beneficiary. However, judging from the perspective of the amounts effectively transferred into the real economy, and then from the perspective of the impact these have had on the economic and social environment, it is obvious that Romania is subject to opportunity costs,” Vasile Puşcaş, former Minister for European Affairs, said recently.

“Romania has the historical opportunity of modernizing itself through the almost €30 billion we have at our disposal from the European Union. If we do not make good use of this money, history has the right to condemn us, because we missed the chance of upgrading this country,” Prime Minister said.

Mugur Isărescu, Governor of the National Bank of Romania (BNR), admitted that he was initially optimistic about the absorption of European funds. “It is surprising to me that the absorption of EU funds is below the minimum level I estimated. It is here, I believe, that efforts should be focussed,” the official indicated.

“Romania does not have a more important goal than accessing European Union funds. Without this money, Romania cannot develop its infrastructure, cannot develop environment programs, and cannot take agriculture out of its current state,” Romania’s President, Traian Băsescu, said.