Zero percent absorption of EU funds

EU Commissioner Corina Cretu, concerned with Romanias slow absorption of EU funds

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Roxana Vasile, 03.08.2016, 12:10

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.