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Romania Attracts $19b in EU Funds

Romania Attracts $19b in EU FundsRomania Attracts $19b in EU Funds

Romania had attracted, by the end of 2016, €17 billion ($19.29 billion) in EU funds, out of the €18.8 billion for the 2007–2013 financial framework, recording a 90.4% absorption rate, the National Bank of Romania said in a report.

Romania’s performance was below that of all of its neighbors, namely 5% below that of Bulgaria, Czech Republic, Estonia, Lithuania, Latvia, Poland, Slovakia, Slovenia and Hungary, Business Review reported.

According to the BNR, approximately two thirds of these amounts were evenly distributed, (around €4 billion in each case) for the funding projects in three main sectors: development of transport infrastructure, environment protection (mainly expansion and modernization works of water systems, works for the development of integrated waste management systems), and development of educational infrastructure, that of lifelong education and funding of micro enterprises.

The rest of the EU funds attracted were directed towards education and training of human resources, including in rural areas, the development of social inclusion, namely the streamlining of economic activity, including through the funding of R&D projects, the BNR report shows.

According to the BNR, in the new financial framework, entries have so far been represented only by advances, and no information is available on the use of these amounts. “The low absorption of the structural and cohesion funds trigger an opportunity cost from the perspective of the convergence of the Romanian economy, as it was noticed that the regions with higher absorption rates between 2007-2014 usually have a faster pace of development.

 

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