The suspension of SAPARD funds affects infrastructure and dairy industry

SAPARD funds, provided by the European Union, were intended for rural development projects. Payments were suspended following a European Commission audit, which uncovered deficiencies in the way payments were granted. Romania is due to receive some €200 million through the SAPARD program.

Most projects likely to be delayed are infrastructure, namely road and sewage network construction, according to the National Federation of Romanian Farmers (FNAR) President, Viorel Matei.

The situation is “very critical” in the dairy industry also, according to the head of the employers union in the field, Valeriu Steriu. Some 30 factories and 160 farms will be forced to delay modernization work launched with EU funds. Steriu said the government should provide the necessary funds from the state budget, unless EU payments are resumed. Matei, however, said it is hardly possible that the government provides such funds, because the state budget lacks the necessary resources.