Romania Should Cut Through Red Tape In EU Fund Absorption

In 2007, the European Union granted its newest member Romania EUR2 billion in funds, but the country only managed to absorb 21%, while on the other hand it contributed EUR1 billion to the E.U.’s budget, Isarescu said.

“Romanians cannot easily access European structural funds due to excessive bureaucracy, which combined with E.U.’s own redtapism, might spell fatality for us,” Isarescu added.

Among solutions for the poor E.U. funds absorption, Isarescu counted a sturdy annual economic growth of around 5% in the next few years, co-financing of 1% of the country’s gross domestic product while keeping the budget gap within the E.U.’s imposed deficit limit and enhanced local administration efficiency.