Romanian Development Minister Wants At Least EUR1B In Redirected EU Funds

Udrea said the ministry has contracted EU-funded projects worth EUR4.3 billion and the total number of project applications is worth EUR12 billion.

She pointed out that, if the Regional Operational Program had more money, funds would be immediately spent. Udrea said she will ask those ministries which failed to absorb the entire amount of EU funds they were allotted, such as the Labor Ministry, to direct funds to the institution she runs.

"Each ministry should be honest and tell how much money they are able to absorb," said Udrea.

She pointed out that, if the ministry she runs gets EUR1 billion in redirected EU funds, a part of the money will be used for the thermal rehabilitation of homes.

Udrea said the European Commission approved the proposition to use European funds for thermal rehabilitation, but the ministry has no money left for the program.

Romania's Minister for European Affairs Leonard Orban has two years to attract EUR16.6 billion in European funds, as the country has so far absorbed only EUR2.6 billion of the EUR19.2 billion allotted by the European Union for 2007-2013.

Since 2007, when Romania joined the European Union, the country has attracted only EUR2.6 billion, or 13.5% of the total amount allotted for the abovementioned interval.

Romanian President Traian Basescu and Prime Minister Emil Boc have repeatedly pointed out that the country needs to increase its EU fund absorption rate to solve infrastructure, environment and regional development problems.

Romania was allotted EUR19.2 billion in structural funds in the 2007-2013 interval, and the money can be attracted through several operational programs. It has received structural funds, cohesion funds, as well as funds for agriculture, rural development and fisheries. The country also benefits from other financing instruments and programs.

The most recent data from the Authority for the Coordination of Structural Instruments (ACIS) reveal the authority received 30,162 project applications by August 31, worth over 235 billion lei (about EUR55 billion), of which about RON150 billion contributed by the EU. Over 12,000 projects have been rejected and 5,385 are being evaluated. By August 31, 8,652 projects had been approved and their total value stood at RON83.2 billion, of which RON50 billion contributed by the EU.

Financing decisions were signed for 6,765 projects. Total payments for the operational programs financed with structural funds stood at about RON11.7 billion, of which RON6.7 billion represented pre-financing, RON4.3 billion was reimbursements from the EU and RON687.7 million reimbursements from the state budget.

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