Absorption of EU funds: Romania versus other countries in the area

In 2007-2013, Romania has available structural funds worth a total of 19.2 billion euros or 81 billion, money that should attract them no later than 2015. This amount does not include funds for agriculture and rural development, and they exceed another 10 billion euros. Considering to date have effectively attracted nearly 9 billion lei, respectively 11.06% of the total, to draw the full amount would be necessary by 2015 disbursements of around 14 billion lei annually, the sum of 7 times higher than in 2010.

Romania has a low absorption rate of EU funds in the fields of energy, transport and technical assistance, according to recent data showing that by December 2010 have been contracted projects for which the required grants worth 10.5 billion euros.

How we are compared to other countries

According to recently published report from the Fiscal Council, for the end of 2010, Romania is in last place among the six countries examined, with an absorption rate for 2007-2013 of 8.6% in Bulgaria (10.2%) Czech Republic (12.4%), Poland (20.4%), Estonia (26%) and Latvia (29%)

Why are major EU funds

These funds represent new money entering into economy, their effect on economic growth having a major importance - taking into account that Romania's GDP is 120 billion, absorbing a sum of 3-4 billion per year in European funds can generate an economic growth of at least 1.5 to 2.5% per year.

Considering that Romania contributes annually to the EU budget with about 1% of GDP, a low absorption puts us onto position to be a net contributor, as was the case in 2007-2009 period.

Should not lose sight of the fact that this money is not borrowed but free, but the EU controls and audits very carefully how these amounts are used. Therefore, spending the money for purposes other than those proposed triggers for those who violate the rules the reimbursement of the full amount allocated to their projects.

Sources: Official statistics, BusinessDay.ro; hotnews.ro