Tag: EU funding

  • March 6, 2025

    March 6, 2025

    EU The interim President of Romania Ilie Bolojan had a meeting in Brussels on Thursday with the PM of Poland, Donald Tusk, the topics approached by the 2 officials including the strengthening of NATO’s Eastern Flank. Mr Bolojan takes part in an extraordinary European Council meeting, where EU heads of state and government are discussing support for Ukraine and European defence. The president of Ukraine Volodymyr Zeleskyy and the NATO Secretary General Mark Rutte were also invited to attend. The European Commission chief Ursula von der Leyen has already sent European leaders a plan to re-arm Europe, with 5 financing instruments: increasing national defence budgets, a EUR 150 bln loan for common defence projects, possible financing from the bloc’s cohesion funds, from the European Investment Bank and private funds. The plan also increases military aid to Ukraine. Last week, Mr. Ilie Bolojan invited the political parties in the Romanian Parliament to consultations, to discuss Romania’s response to the current security challenges. Most parties opposed Romania sending peacekeeping troops to Ukraine, in the event of an end to the conflict with Russia, but voiced willingness, in principle, for Romania to continue supporting the neighbouring country.

     

     

    TREASON Prosecutors with the Directorate Investigating Organised Crime and Terrorism Offences (DIICOT) have detained six individuals over charges of forming an organised crime group and treason. According to DIICOT, the defendants apparently set up a paramilitary organisation and negotiated Romania’s exit from NATO with Russian agents. Prosecutors say that the organised crime group was structured like a military-type organisation, with management ranks and operative personnel. Radu Theodoru, a retired general and 101-year-old war veteran, was also among the organisation’s leaders. The group used online platforms to release video materials and recruit members. At the same time, it took steps to hold negotiations with foreign political and military actors regarding the replacing of the current constitutional order. In January, DIICOT also says, 2 of the defendants travelled to Moscow, where they came into contact with people willing to support the organisation’s efforts to take over power in Romania.

     

     

    GOVERNMENT The Romanian government is set to pass several emergency orders today, concerning, among other things, the heathcare reform and the spending of EU funds. In the field of healthcare, the government wants to improve regulations on public medical care for freelancers, on the taxation of medicines, on the organisation and operation of medical offices and the granting of sick leaves. In a separate emergency order, the Romanian government earmarks the financing for certain local authorities to complete works to extend and upgrade natural gas infrastructure. Finally, the cabinet is also to approve the amount of this year’s state aid for the livestock sector.

     

     

    EU FUNDING Romania has received over EUR 100 billion in European funds since its accession on January 1, 2007, the minister of investments and European projects, Marcel Boloş, said in a Facebook post on Wednesday. According to him, Romania is no longer an economic periphery, but a country that is rapidly catching up and has surpassed Poland, Hungary, Croatia and Greece in terms of GDP per capita, an essential indicator of the standard of living. If we are reckless, we blame the European bloc, but the fact that we are at the best moment of our country’s development is due to our EU and NATO membership, Mr. Boloş emphasised.

     

     

    TRAVEL Romanian tourism increased slightly in the first month of this year, compared to January 2024, with 12% more nights spent in tourist accommodation units, says the National Tourism Agency. Over 84% of visitors were Romanians, with an average length of stay of almost two days, while foreigners stayed in accommodation facilities for slightly more than two days. According to experts, the upward trend will continue this year, when it could exceed the level reported in 2019, before the COVID-19 pandemic.

     

     

    FOOTBALL The Romanian football champions FCSB take on the French team Olympique Lyon in Bucharest tonight, in the Europa League round of 16. The return leg will take place in France on March 13. The Romanian team qualified for the round of 16 of the Europa League, after outplaying the Greek team PAOK Thessaloniki, coached by the Romanian Răzvan Lucescu. (AMP)

  • December 14, 2024 UPDATE

    December 14, 2024 UPDATE

     

    NEGOTIATIONS In Bucharest, negotiations on a future coalition of the pro-European parties in Parliament have made progress with respect to the structure of the new government. The Social Democratic Party will control 7 ministries, the National Liberal Party 4, Save Romania Union 3, and the Democratic Union of Ethnic Hungarians in Romania 2, said the Social Democrats’ senior vice-president Sorin Grindeanu. It has not yet been decided which ministries will go to each party and the names of the new ministers. On the other hand, the Social Democrats and and the Democratic Union of Ethnic Hungarians plead for a single presidential candidate of the coalition. After the Constitutional Court cancelled the election for president, the future executive will have to decide by the end of the year on a new presidential election calendar, the UDMR believes. The pro-European parties elected in Parliament hope to come up with a cabinet by Christmas.

     

    EU FUNDING Romania collected EUR 1.9 billion in EU structural and cohesion funds in 2021-2027, and the overall absorption rate, 6.11%, is close to the EU average of 6.19%, the minister of investments and European projects, Adrian Câciu announced. The absorption rate for the structural and cohesion funds under centrally managed programmes is higher, namely 7.3%, Caciu said in a Facebook post. He emphasised that Romania is yet to to catch up on Regional Programmes, where the absorption rate is 3.2%, but he voiced confidence that the example set by the current coalition comprising the Social Democrats and the Liberals in terms of management and implementation of European funds, including decentralisation, will be followed by the new government, and the pace of EU fund absorption will be sustained, so as to replicate the success of the 2014-2020 period.

    PARLIAMENT On Monday the last week of work for the current legislature begins, with many bills still unfinished for Romanian Senators and Deputies. Until the new Parliament is convened, the Chamber of Deputies should adopt the new Forestry Code, which has been on the agenda for several months. The code is a benchmark in the National Recovery and Resilience Plan and a priority for the Government, which says the document must be adopted by the end of the year. The bill provides, among other things, for the seizing of vehicles carrying stolen wood, for green belts around major cities, for preemptive rights and reasonably priced quality materials for local furniture manufacturers, for video monitoring of forest roads, and bans clear-cutting in all protected areas. Meanwhile, the Senate is expected to vote on a bill punishing holders of multiple positions financed from the state budget and on another one limiting to two the number of terms in office for the heads of the secret services. The current MPs remain in office until December 20, when the first session of the new Parliament is scheduled, following the December 1 general elections.

     

    ECONOMY Romania’s trade deficit was EUR 5.5 billion higher in the first 10 months of the year than in the same period in 2023, according to data made public by the National Bank. More than half of this deficit is the result of growing imports of goods. The central bank also says that the total foreign debt went up over EUR 18 billion and exceeded EUR 186 billion. According to analysts, along with the very high budget deficit, these are the main problems of the Romanian economy, and they must be solved concurrently, which is very difficult. They believe that through a correct budget adjustment, expenses would be cut, and revenues could be raised by eliminating corruption and through a fair tax system.

     

    ANNIVERSARY Timişoara marks 35 years since the anti-communist Revolution of December 1989, which broke out in this city in western Romania. Under the motto “35 years of freedom”, events dedicated to the 1989 heroes and celebrating the three and a half decades since Timişoara became the first city free from communism in Romania will take place between December 15 and 20. The agenda includes, as every year, religious services, wreath-laying, exhibitions and film screenings. A concert entitled Requiem in Memoriam is scheduled on Sunday at the Banat Philharmonic, Monday will see the inauguration of the Freedom Portal, a light installation that reproduces sounds from the Revolution, followed by the traditional march “Heroes Never Die”. Tuesday will be a day of mourning, and the events on December 20 will end with a concert called “Rock for revolution”. (AMP)

  • September 3, 2020 UPDATE

    September 3, 2020 UPDATE

    COVID-19 – The
    number of Covid infections in Romania stands at 90 thousand with a death toll
    over 37 hundred. The country’s president Klaus Iohannis has again appealed for
    compliance with prevention rules and regulations as worrying figures have been
    reported during the pandemic. The president believes the school year can begin
    on September 14 in Romania, but unless the situation improves, authorities are
    considering alternative scenarios.


    EU – The European Commission has greenlit an
    investment worth €875 million from the Cohesion Fund to build the first phase
    of the Sibiu-Pitesti motorway in central Romania. This will be the first
    motorway crossing the Carpathians, allowing for a better connectivity along the
    Rhine-Danube corridor. The project will help ease traffic in Romania, boost
    road traffic safety, reduce travel times and the costs for the transport of
    passengers and goods, the EU Commissioner for Cohesion and Reform, Elisa
    Ferreira has said. The European Commission has also adopted a funding worth
    €578 million from the Cohesion Fund to improve the Romania’s disaster response
    capacity. This investment will help improve the terrestrial, air and maritime
    response through the purchase of new equipment and training of personnel.


    MEETING – Foreign Minister Bogdan Aurescu on
    Thursday met with Israeli President Reuven Rivlin, as part of his second visit
    to Israel. Talks focused on the contribution of the Romanian community in
    Israel to the progress of Israeli society. Minister Aurescu said Romanians in
    Israel serve as a bridge between the two countries, stressing the need to
    preserve their Romanian cultural identity, particularly among the youth. At the
    same time, the two officials discussed the prospect of the peacemaking process
    in the Middle East. The Romanian Foreign Minister reiterated Romania’s
    readiness to support the positive evolution of this file. Minister Aurescu also
    met with Ofir Akunis, Israeli Minister for Regional Cooperation. On this
    occasion, the two officials expressed a common interest to intensify cooperation
    in the economic sector, with a focus on the need to identify projects that
    should boost the two countries’ economies, including in the field of science,
    research and innovation. Also on Thursday, Bogdan Aurescu paid an official
    visit to Palestine, where he had consultations with Prime Minister Mohammad
    Shtayyeh on bilateral relations and cooperation prospects, as well as on the
    peace-making process in the region. The Romanian official expressed hope to
    develop cooperation with Palestine in such fields as the economy, education or
    home affairs. On Wednesday, the Romanian Foreign Minister also met with Prime
    Minister Benjamin Netanyahu. The two agreed to intensify bilateral political
    dialogue. Additionally, Bogdan Aurescu also met with the Israeli Foreign
    Minister, Gabi Ashkenazi. The two signed a cooperation agreement in the fields
    of culture, education and sports and decided to set up a joint task force to
    extend economic and trade cooperation.


    HELICOPTERS – The Romanian company
    ROMAERO and Sikorsky, which is part of the American group Lockheed Martin, have
    signed a Memorandum of Understanding with a view to setting up a Regional
    Center for Black Hawk Equipping and Maintenance for Central Europe. Black Hawk
    is the most commonly used multi-mission helicopter in the world. ROMAERO will
    equip the helicopters both for military missions as well as for search and
    rescue operations, emergency medical services, command and control missions or
    transport of officials. The aircraft will be delivered from the PZL Mielec
    factory in Poland, the biggest production plant owned by Lockheed Martin
    outside the United States. Minister of Economy, Energy and the Business Sector,
    Virgil Popescu, said the Memorandum creates the conditions to implement the
    strategic partnerships Romania has signed with the United States and Poland.


    NAVALNY – Western
    leaders and institutions have firmly condemned the poisoning of Russian
    opposition leader Alexei Navalny and called on Moscow to provide explanations
    and assurances that the culprits will be brought to justice. Romania’s Foreign
    Minister Bogdan Aurescu says that Navalny’s poisoning is completely
    unacceptable and has called for a thorough and impartial investigation. On
    Wednesday, Germany announced that Navalny, presently in a hospital in Berlin,
    was poisoned with a novichok nerve agent. The use of chemical weapons under any
    circumstances, is completely unacceptable and a breach of international law,
    the head of the European diplomacy Josep Borrell said. The White House has also
    voiced concern regarding the incident pledging cooperation with its allies to
    bring the culprits to justice. Dmitry Peskov, spokesman for the Russian
    government, says the authorities in Moscow are ready to cooperate with the
    German executive to uncover the circumstances of Navalny’s poisoning. This
    fourth-generation nerve agent has been used to eliminate numerous Kremlin
    critics, although Moscow has always denied any allegation.


    TENNIS -
    Romanian tennis player Patricia Tig on Thursday lost to Donna Vekic of Croatia
    in the second round at the US Open. Another Romanian, Sorana Cirstea, is
    playing Johanna Konta of Great Britain. In the men’s doubles, Horia Tecau and
    Jean-Julien Rojer of the Netherlands are playing Marcela Arevalo of San
    Salvador and Jonny O’Mara of Great Britain.


    (Translated by
    D. Bilt & V. Palcu)

  • Road infrastructure projects

    Road infrastructure projects

    The contract for building the Ploiesti-Brasov motorway, crossing the Southern Carpathians from south to north, will be put out to tender on Monday. The announcement was made by PM Viorica Dancila, who said that an accord for a private-public partnership for the construction of the motorway will be signed by the end of the year.



    Viorica Dancila: “This is a long-awaited project, for which the Government has been making efforts in the past few months. Romanian and foreign investors are invited to submit tenders in the next 30 days. The contract will be awarded through a competitive selection process. Negotiations with the selected investors will follow, so that in December we could sign a public-private partnership deal for the construction of this motorway.



    No cost estimates have been made public yet. The Ploiesti and Brasov county capitals are currently connected by a European road crossing the countrys most popular mountain resorts. However, the heavy traffic here, especially on weekends and during holidays, has placed this road among the busiest in south-east Europe.



    The Opposition criticises the solution chosen for the financing of the Ploiesti-Brasov motorway, namely a public-private partnership, the same option as in the case of Moldavia motorway linking central and north-eastern Romania. The leader of the National Liberal Party, Ludovic Orban, has called on the Romanian Government to apply for non-reimbursable EU funds for Moldavia motorway.



    Ludovic Orban: “In fact, by taking the decision to finance Moldavia motorway though a public-private partnership, the Social Democratic Government has conveyed the message that building this motorway segment is not a priority and that in fact it does not plan to build this vital motorway at all. It is clear, as confirmed by European Commissioner Corina Cretu, that this motorway segment can be financed from non-reimbursable European funds, under the Infrastructure and Environment Operational Programme.



    In turn, the European Commissioner for Regional Development, Corina Cretu, has harshly criticised Bucharest for the lack of infrastructure projects that could run on European funds. She has also said that 2 billion euros allotted for transport have already been lost, and that efforts are being made to avoid losing some of the funds earmarked for the 2014-2020 period. Romanian authorities have announced that around 100 km of motorway will be operational as of this year in the north-west and west of the country.



    Romania has less than 750 kms of motorway, of which around 100 were built during the communist period. According to the media, if the promises made by the countrys transport ministers in the past five years alone had been kept, Romania would now have 8,000 km of motorway.


    (translated by: Elena Enache)

  • Brussels expects Romanian infrastructure projects

    Brussels expects Romanian infrastructure projects

    Pundits in Bucharest are commenting on the latest episode
    from the so called ‘War of the Roses’ saga, hinting at the roses that are part
    of the logo of the Social Democratic Party, the senior partner in the ruling
    coalition in Romania. Commissioner Corina Cretu, herself a member of the Social
    Democratic Party, supported by the former leader of the party Victor Ponta to
    get the office in Brussels, has become virulent in criticizing the Romanian
    Government, now headed by Viorica Dancila. She has perceived as an insult the
    lack of infrastructure projects, for which Romania could easily get European
    funds. The Commissioner has stated that as regards transports, the most
    vulnerable and at the same time one of the most important sectors, Romania has
    lost two billion Euros, and efforts are being made to avoid decommitment for
    the 2014-2020 period. Here is the European Commissioner Corina Cretu:


    We have money for feasibility studies
    but we have received no applications for that. We could program the building of
    the Targu-Mures motorway for 2021. Unfortunately, the Government has announced
    that it wants to build the motorway based on the public-private partnership
    system. Our specialists are not comfortable with this approach, because it
    means de-prioritizing investment. We are completely open, but as long as we do
    not have projects, there is nothing to analyze, and therefore nothing to fund. I would like to publicly announce that I will
    no longer tolerate any insult from the Romanian Government in relation to the
    work I do.


    Calin Popescu Tariceanu, the leader of the Alliance
    of Liberals and Democrats, the junior partner in the ruling coalition in
    Bucharest, has stated that he fully supports the statements made by the
    European Commissioner, of whose good faith and good intentions he is convinced.
    The Social Democratic Finance Minister Eugen Teodorovici has in turn admitted
    that the delay in attracting European money is affecting the budget. However,
    as regards the projects mentioned by Commissioner Cretu, he also said:


    They are being verified and analyzed by JASPERS,
    a body made up of experts with the European Investment Bank, and other
    structures, which, unfortunately are not moving as fast as they should, in the
    sense that they should submit to Brussels the funding applications faster. Our
    main problem, budget-wise, is that if these reimbursement applications are
    delayed too much, the disbursement is delayed too, therefore the state budget
    deficit grows.


    The media speculates that the chilly relationship between
    Corina Cretu and her colleagues in Bucharest could be motivated politically.
    Her term ends next year, and the parent party hasn’t even proposed her to run
    again in the elections for the European Parliament due next year.





    (Translated by M. Ignatescu)

  • How to attract more European funds

    How to attract more European funds

    The EU
    Commissioner for Regional Policy Corina Creţu has met in Bucharest with PM
    Viorica Dăncilă. The focal points on the agenda of talks have been the
    absorption of European funds and the inclusion of the Jiu Valley (centre-west)
    into a special program developed by the European Commission, to eradicate
    poverty in that region.








    An action plan
    to step up the absorption of EU funds will be developed by the Bucharest
    authorities, with support from the European Commission’s Directorate General
    for Regional and Urban Policy. The announcement was made by the EU Commissioner
    for Regional Policy Corina Creţu after a first meeting with the new PM Viorica
    Dăncilă. Romania should step up the absorption of European funds as
    otherwise it runs the risk of loosing the European money, Corina Creţu has
    stated. She has said that delays have been registered in such fields as
    regional development, transports and the construction of regional hospitals.

    Corina Creţu: I have full
    confidence that the new government will take into consideration these issues
    that have been left pending, will take action very fast and come up with the
    best solutions to accelerate their implementation. Practically, we have agreed
    together to create an action plan and to receive proposals, by February 23, in
    order to accelerate the accession of European funds.


    Prime Minister
    Viorica Dăncilă has said she will lay special emphasis on the accession of
    European funds for transports and the construction of regional hospitals. She
    has stressed that she requested from ministries an updated report on the
    accession of European funds.

    Viorica Dăncilă: I have
    called on the minister for European Affairs to make a report on all European
    directives which have not been implemented or on the stage of their
    implementation. I have also said that each ministry should have an updated
    report on the stage of absorption, because I consider it is very important for
    Romania to have a good relation between its Government and the European
    Commission.


    Viorica Dăncilă
    and Corina Creţu have also agreed that the Jiu Valley should be included into a
    special program developed by the EC, in an effort to eradicate poverty from
    that region.

    Corina Creţu: I have
    invited Romania to submit an application and use European funds to give a boost
    to one of the poorest areas in Romania, namely the Jiu Valley. I think that
    being part of this pilot project is an important initiative and Romania should
    play a key role, considering its experience in the field.


    In turn, Prime Minister Viorica Dăncilă has said that
    the problems in the Jiu Valley are a priority. Viorica Dăncilă:


    The Jiu
    Valley is a priority so it should be included into this pilot program. I am
    confident that we can take huge steps forward for Romania, and I’m referring to
    the Government, the European Parliament, and particularly to the European
    Commission, in which we place our great hopes.


    Once one of the most important mining regions in Romania, the Jiu Valley
    has become one of the most underprivileged areas in the country. Romania’s
    mining output has plummeted since 1990, many mines and pits have been closed
    down, and consequently many miners have been made redundant.



    (translated by Diana Vijeu)

  • European Funds for Romania

    European Funds for Romania


    In 2018, Romanian authorities intend to attract at least 6.3 billion Euros worth of European funds, money which is going to be channeled mainly into education, healthcare, infrastructure and agriculture. A number of contracts funded from European money, under which investments will be made worth more than 280 million Euros, were signed on Monday at the Government headquarters in the presence of the European Commissioner for Regional Policy Corina Creţu. These are 18 financing agreements applied on two priority axes, for the rehabilitation and modernization of several county roads, of the water and waste water infrastructure, for energy efficiency and the thermal insulation of blocks of flats.



    The European Commissioner believes that Bucharest is on the right path, but draws attention to the fact that it is important for Romania to keep its economic growth pace, to have more political stability and to avoid complicating the procedures related to European projects. Corina Creţu pointed out that most countries send their applications online, in electronic format, and Romania should follow their example. From this point of view, cutting down on red tape would be an absolute priority.



    Mrs. Creţu added that more than 60% of public investments in Romania are made from European funds:


    “Over 55,000 jobs have been created and more than 5,000 small and medium sized enterprises have received support. Actually, the Competitiveness Operational Program was fully implemented. For the 2014-2020 time-frame, we have 7 times more applications for supporting SMEs than the allocated amount would cover. Also, around 900 new research and development labs have been set up and 40,000 households have benefited from energy efficiency measures. The projects supported through the cohesion policy programmes could really make a difference in peoples daily lives. As regards the current programming period, important progress has been reported over the past months, the selection of projects has been accelerated and almost 4.3 billion Euros have already reached Romania, out of all the six European funds, advance payments included.”



    Eight projects developed with European money in the fields of tourism, professional training, fisheries and agriculture have received awards in the presence of the European Commissioner Corina Creţu.


    (Translated by Lacramioara Simion)




  • The need for European funding

    The need for European funding


    Attending a meeting with local and regional authorities in Cluj, north-western Romania, the European Regional Policy Commissioner Corina Cretu has stated that Romania must simplify the procedures for accessing European funds and absorb them more rapidly. Commissioner Cretu has recalled that all national management and control authorities in the field have been accredited. She has also given a few details about the impact that money from the previous EU budget framework has had on the Romanian economy:



    “After a lot of effort and a rather slow start, we have managed to get to an absorption rate of approximately 90%. Thanks to European funding, in the past ten years some 51,000 jobs have been created in Romania, of which 14,000 in the private sector. We have provided support to small and medium-sized enterprises, which are the back bone of any economy. 2,700 such companies in Romania have received direct support.”



    Corina Cretu has drawn attention to the fact that there are only two months left for the EU member countries to meet all the requirements in order to get European funding. Unless they do so, the College of Commissioners will discuss the possibility of suspending some funding lines, Commissioner Cretu also said:


    “The conditions imposed on public procurement in road and railway transportation are indeed a big problem, because public procurement affects all projects horizontally. In the field of research and innovation, we are about to lift this conditionality. Also, waste management and public administration are faced with big problems.”



    Commissioner Cretu has also stressed the fact that the European Commission discourages over-regulation with regard to the absorption of EU funds. She believes that Romanian authorities should make all the necessary efforts to attract as much European money as possible, because the future EU budget will be sensibly smaller, given the withdrawal of Great Britain. Moreover, the EU budget will be used to deal with new challenges, such as migration and security.



    At the same meeting, the Minister Delegate for European Funds Rovana Plumb has stated that Romania has made up for part of the delays registered with regard to accessing European funds. She has also stated that big steps have been taken also towards simplifying the procedure whereby Romania can get access to EU funds.




  • The EU Supports Romania’s Social Enterprises

    The EU Supports Romania’s Social Enterprises

    Social
    enterprises are a segment of the economy that mainly focuses on how to provide
    help for a community, with a view to making it stronger. Such enterprises seek to
    promote a relevant activity rather than make a profit. For a few years now, the
    EU has encouraged social enterprises in Romania. In order to adapt their
    activity to the European legislation, but also in order to cater for a series
    of real social needs, social enterprises have gradually begun to develop in
    Romania, all the more so as, since mid-2015, Romania has a Law on Social
    Economy.

    In their early stages, many of these projects are financed through
    European funds. And since their ideas are worth looking at, the Representation
    of the European Commission in Bucharest has this year dedicated the ‘Yes, we
    care’ campaign to social enterprises. As part of this campaign, running for
    three years now, in 2016 ambassadors of EU member states have paid visits to such
    EU-financed social projects. Monica Loloiu is a member of the Representation of
    the European Commission in Bucharest. She will now be speaking about why such a
    theme has been chosen for the ‘Yes, we care’ campaign.


    Romania is no longer lagging behind. The fact that there is a Law on
    Social Economy, which has been recently passed by the two Chambers of
    Parliament, is an important step forward. There are organizations and companies
    that have already implemented projects
    targeting social economy, meaning that in Romania, people who are in the know
    are also aware they can change things through such projects. But what exactly
    does social economy mean? It means you think out a project in order to sort out
    social inequalities or in order to integrate the underprivileged into the labor
    market, thus giving them access to better jobs.


    And
    that is exactly what happened, thanks to a project themed MamaPan, a
    bakery where bread is prepared following all traditional rules: no additives,
    no preservatives and no industrial yeast. This social enterprise, a beneficiary
    of European funding, was mainly set up with a view to helping single mothers.
    With details on that, here is the manager of this small business Irina Sorescu:


    The project was initiated in November 2014, when we got
    the EU money, and the idea occurred within the Partnership for Equality
    Foundation, the foundation that set up the MamaPan bakery, which is a
    social enterprise, more precisely an association for women in vulnerable groups.
    After we’d had contact with some of these women, we realized that what they
    needed the most was a steady job. Of those vulnerable groups, single mothers
    were faced with the biggest risks. For several categories of employers, they
    are not desirable employees, for reasons pertaining to their family
    responsibilities and the fact they cannot be made redundant any time.


    Although
    the bakery products market is big, especially in Bucharest, and competition
    tough, the MamaPan social enterprise stood the test of time. Clients were drawn
    into it not only by the artisan bread, but also by the idea of helping the six
    single mothers working in the bakery. So the business has survived with flying
    colors. It’s been a year since the deadline for European financing expired and
    which the Partnership for Equality Center had no problem obtaining, as Irina
    Sorescu told us:


    As we were a rather experienced organization as regards
    the management of EU-funded projects, we had no problem writing the project,
    all the more so as the idea we had for that was clear. The problems we had
    while running the project were mainly related to the delays in the disbursement
    of funds and all sorts of other bureaucratic requirements. However, we may have
    not had the chance to start up the business without the initial financial aid
    that we got. It was much more difficult for us when the project saw its closing
    stage, the moment we had to be on our own, just like any other business, with
    no support from the outside, given that what we offered our women employees
    meant a great deal more than what an ordinary business could offer. It’s pretty
    difficult to create a distribution market, particularly in Bucharest, due to
    the competition in this field. By and large it’s very difficult to keep a business
    on the market and make a social business sustainable.


    ClayPlay is another social enterprise, based on craftsmanship and
    the revival of some lasting traditions. The business stemmed from the passion
    for ceramics of the initiator of this project, Gabriela Hobeanu:


    This is an EU-funded project. I got 25,000 Euros, which helped me purchase all the equipment I
    needed, which was pretty expensive. As regard the social economy part, from the
    very beginning I had two full-time
    employees. One of the project’s requirements was that at least one of them
    should be under 30. For the rest of it, we very much rely on students, with no
    official qualifications, but who are very passionate and skilled. ClayPlay
    is a combination of decorative and functional ceramics, which also involves
    staging workshops for adults and children alike. We have chosen this because
    it’s a very beautiful craft, which runs the risk of being forgotten.


    Appetite
    comes with eating, they say, so it was enough for people to learn about the
    existence of these workshops to have their interest rekindled. Here is Gabriela
    Hobeanu again:


    I have sensed an increased amount of joy in the people
    who come to our workshop, and they are happy that they can find something like
    this in Bucharest. It’s beautiful, refreshing…it’s therapy.


    As
    part of the ‘Yes, we care’ campaign, EU-funded social enterprises in Romania
    have been introduced to EU ambassadors in Bucharest as success stories.











  • Zero percent absorption of EU funds

    Zero percent absorption of EU funds

    Following Romanias EU integration in 2007, the absorption of EU funds has turned out to be more complicated than anyone had expected. Disinterest, red tape and embezzlement were some of the obstacles hindering the implementation of local and regional development projects. The Spanish or Portuguese models of using the funds made available by the EU remained a utopia.



    In April, within only a few months of taking office, the Minister for European Funds Aura Raducu resigned at the request of the Prime Minister, who expressed dissatisfaction with her short-term objectives. Succeeding her was Cristian Ghinea, whose priority list included the proper completion of the operational programs for 2007-2013 and launching the call for projects for the 2014-2020 period.



    On Tuesday, Bucharest was harshly criticized by EU Commissioner for Regional Policy, Corina Cretu, who expressed concern with the rate of implementing projects under the current budget framework. Although Bucharest has made continuous efforts, it has 0% absorption of EU funds for the 2014-2020 period, Commissioner Cretu has said. Regional policy has been earmarked a big chunk of the EUs overall budget, some 351 billion euros, being one of the leading investment tools of the European bloc. Furthermore, over the years, the EU has financed tens of thousands of projects with a notable impact at the level of both member states and the Union as a whole. Additionally, in the current budget execution period, over 100 billion euros are allotted to urban development, this being the first time European cities get to manage some 15 billion euros directly.



    Romania has the third-largest allocation after Poland and Italy in terms of sustainable urban development. The Government has decided that 20% of EU funds should be managed directly by local officials from 39 county seats. In order to help Romanian cities make the most of the opportunity they are presented with, Commissioner Corina Cretu has announced that, jointly with DG REGIO, the Commissions Directorate General for Regional and Urban Policy, the Commission will organise a special event aimed at promoting all these opportunities, to be held in early October in Bucharest. Attending will be the mayors of all the 39 county seats in Romania, and of other European capitals.



    In another development, the Romanian Ministry for European Funds has launched a public debate on the new guidelines for accessing EU funds by communities in marginalized urban areas with a population of over 20,000.