Tag: absorption of EU funds

  • November 28, 2023

    November 28, 2023

    TALKS – Prime Minister
    Marcel Ciolacu today met EU Commissioner for Cohesion and Reforms Elisa
    Ferreira, who is paying an official visit to Romania. Romania has absorbed 90%
    of EU funds over the 2014-2020 financial framework and is thus ranked 4th
    at EU level, the Romanian Prime Minister said. Marcel Ciolacu added that EU
    Commissioner Ferreira also hailed this historic premiere. The EU official
    encouraged Bucharest to continue to develop its administrative capacities and
    develop long-term programs of economic advancement and sophisticated
    technologies, so as to move from the development phase to becoming an economy
    that produces added-value. Following talks with Prime Minister Marcel Ciolacu
    in Bucharest, the EU official will deliver a keynote speech on the sidelines of
    the conference titled Green and digital transformation backed by EU funds: the
    cohesion policy of the future and reconciling industrial transition with
    territorial challenges, hosted by the Romanian Parliament.




    NATO – Foreign Minister
    Luminița Odobescu is attending the two-day meeting of NATO Foreign Ministers
    held in Brussels. The event is held against the backdrop of a deteriorating
    security climate, impacting multiple areas of increased interest for the
    Alliance – the Russian aggression in Ukraine, tensions in the Western Balkans, the
    military conflict pitting Israel against Hamas. The NATO meeting also marks a
    key milestone ahead of the 2024 NATO Summit in Washington. According to the
    Romanian MFA, Minister Odobescu will express solidarity with the Alliance and
    refer to NATO’s efficiency in promoting security and stability. The Romanian
    Minister will also highlight the strategic importance of the Black Sea region
    to Euro-Atlantic security and will encourage the development of a structured
    approach to this region, as per the Allied resolutions adopted in Madrid and
    Vilnius. At the same time, Minister Odobescu will underline the need to fully
    implement the decisions to consolidate NATO’s deterrence posture. With respect
    to the Western Balkans, Luminița Odobescu will call on NATO to continue its
    support for this region by closely cooperating with the EU.




    CEASEFIRE – The ceasefire
    between Israel and Hamas in Gaza has been extended for 48 hours. On the fifth
    day of the break in hostilities, another 10 Israeli hostages are expected to be
    released, while essential humanitarian aid should reach Gaza. Approximately 170
    people are still held hostage in Gaza following the October 7 Hamas attack, the
    Israeli army says. In turn, Hamas claims it is not holding all these people,
    which could complicate efforts to release the most vulnerable of them. A group of
    Israeli hostages arrived last night in Israel, after Hamas released them in
    exchange for 33 Palestinian prisoners.




    EU-UK RELATIONS – Romania’s Defense
    Minister Angel Tîlvăr on Monday met his British counterpart, Grant Shapps,
    during his visit to London. The two officials discussed prospects of
    consolidating and developing the strategic partnership between Romania and the
    UK, the security context in the Black Sea region, the Russian Federation’s
    aggression in Ukraine and topics on the NATO agenda. We discussed ways to
    consolidate cooperation with regard to consolidating NATO’s defense and
    deterrence posture on the Eastern Flank, implementing the NATO Strategic
    Concept and the need to continue exchanges with a view to better understand the
    specific challenges of each region, Minister Tîlvăr said. In his talks with
    Grant Shapps, the Romanian Defense Minister also expressed concern regarding
    the security of the Black Sea region, generated by a dangerous escalations
    caused by Russia’s withdrawal from the Black Sea Grain Initiative. On the other
    hand, Minister Tîlvăr hailed the UK’s contribution to consolidating Allied
    postures on the Eastern Flank, particularly in the Black Sea region, which he
    described as a clear expression of Allied solidarity and unity. The UK’s
    participation in air policing missions in Romania, its future engagements and
    exercises at bilateral and multilateral level are but a few examples of this
    contribution, the Romanian official said. (VP)

  • The Week in Review (13-17.03.2017)

    The Week in Review (13-17.03.2017)

    Romania’s budget deficit, under the spotlight of the European Commission


    The European Commission has warned that Romania could register the highest budget deficit rise at EU level this year, to 3.6% of the GDP, despite reporting the biggest economic growth rate last year. The head of the European Commission Representative Office in Bucharest, Angela Cristea, says the country report on Romania, released earlier this week, signals a series of paradoxes. Angela Cristea:


    On the one hand, the poverty rate in Romania has gone down, on the other, social inequality has gone up, with Romania seeing the biggest growth of income inequality in the EU. We notice that this is not an isolated occurrence, but that this tendency has existed since 2012. In fact, it has also been reported in other EU member states and we believe that it reflects the global effects of the [economic] crisis complicated by the effects of globalisation.



    Romania needs robust economic policies to consolidate the economic growth it has seen in recent years, given that the current financial and budget framework presents a series of risks, experts with the International Monetary Fund also said during a meeting they had with President Klaus Iohannis on Thursday. They say Bucharest should shift its focus from boosting consumption to supporting investment and production, as well as increasing its absorption of EU funds.



    EU fund absorption — success and failure


    Romania needs to take urgent action to step up its EU fund absorption rate. This was the main point on the agenda of this week’s meeting between EU Commissioner for Regional Policy, Corina Cretu, and Prime Minister Sorin Grindeanu, held in Bucharest. The EU Commissioner previously warned that Romania’s absorption rate for the 2014-2020 financial framework is zero halfway through the programme. Corina Cretu believes 2017 is a critical year for Romania in terms of EU fund absorption. The good news, however, is that Romania had a 90% absorption rate in the previous financial framework, 2007-2014, absorbing some 17 billion euros of the total of 19 billion available, which it invested in the Romanian economy, the results thereof being visible at local level. For his part, Prime Minister Sorin Grindeanu firmly stood for unblocking certain areas that would allow attracting European funds, that the EU funds are the engine of economic growth.



    Interior Ministry presents its annual report


    Crime rates have substantially fallen for the fifth consecutive year in Romania, according to the figures presented on Wednesday by the Interior Ministry as part of its annual work report. More specifically, fewer cases of manslaughter, domestic violence, theft and robbery have been reported. Equally important, 2016 was the fourth consecutive year with under 2,000 deaths caused by traffic accidents. Another major achievement last year was the capture of a total 2,663 kilos of cocaine. At the same time, according to the 2016 report, one of the priorities of the Interior Ministry was to prevent and fight economic and financial crime and corruption. More than 200 criminal groups have been dismantled. Minister Carmen Dan, with more details:


    The operations aimed at preventing and curbing tax evasion, corruption and smuggling focused on measures to recover the losses caused by such offences, which resulted in a higher contribution to state budget revenues. The activities conducted by the Ministry with respect to fighting economic and financial crime resulted in the investigation of 32,000 offences, and in the freezing of assets


    The activity of the Interior Ministry, Carmen Dan added, is however hindered by the shortage of staff.



    Romanian women exploited in Italy


    The Government of Romania sent an official delegation to Italy after reports pointed to cases of abuse involving Romanian citizens employed in Sicily farms. After talks between the Romanian minister for the diaspora Andreea Pastarnac and local officials and experts, the Romanian and Italian authorities decided to set up a support and assistance centre for the victims and for people vulnerable to trafficking, as well as mobile units providing on-site assistance, counselling and healthcare. According to an investigation carried last Sunday by the British weekly The Observer, nearly 7,500 female workers, mostly Romanian, are treated as slaves in farms in the south of Italy. They are subject to many forms of abuse, including beatings, threats and rape, which are perpetrated with almost total impunity. (Translated by V. Palcu & A.M. Popescu)

  • The increase of the EU fund absorption rate

    The increase of the EU fund absorption rate

    The exponential development of such countries as Portugal, Ireland or Spain shortly after their EU accession made Romanians hope that once they joined the EU, they would enjoy at least a similar well-being, due to the EU funds they would be allocated. However, the reality has contradicted them! The over-bureaucratic procedures of access to the funds or unpredictable procedural changes are just two of the drawbacks condemned by many of those who asked for European money.



    Early this year, according to the European Commission representation in Bucharest, Romania reported the lowest absorption rate, far below the EU average. However, the situation might change and by the end of the year, this country might absorb 70% of the funds it has been earmarked, since at present the absorption rate stands at 65%, as the Minister for European Funds, Marius Nica told the Chamber of Deputies. Three months before the closure of the 2007-2013 financial year, Romania has absorbed 12.8 of the 19 billion Euros it has been earmarked for that period. As Minister Nica said, Bucharest has failed to spend more European money, due to the slow absorption rate reported in the previous years. Minister Marius Nica:



    In 2009, the absorption rate stood at 0.7%, in 2010 – 1.1%, in 2011 – 3.6%; so, its no wonder that well reach only an absorption rate of about 70%. Let me go on: in 2012, the rate was 5.9%, in 2013 – 15.14% and in 2014 – 18.56%.



    In the meantime, measures have been taken to benefit the end-users. Minister Marius Nica again:



    Over 2007-2009, the period of assessing a project of the Sectoral Operational Programme “Human Resources Development ranged from one year to one and a half year, during which time, the beneficiary no longer existed. At present, we pledged that the evaluation period should be 70 work days starting the moment the project was submitted until the evaluation and signing of the funding contract.



    Although the opposition has criticized the government for Romanias losing European money, representatives of all parliamentary groups have agreed that the flaws in the system should be done away with, so that this financing source might no longer be lost. Both the Democratic Union of Ethnic Hungarians in Romania and the National Liberal Party have expressed their readiness to help simplify procedures and prepare the next financial year. Liberal MP Mircea Toader:



    “Give us the package of laws on tenders and public procurement! Were all interested in using those funds and Ive often said, even within my party, that it is nonsensical for any minor company to be able to block all sorts of public tenders.



    For the 2014-2020 financing period, all operational programmes for Romania are approved, 23 billion Euros being allocated.