Co-Financing, Romania's Main Problem In Attracting EU Funds – State Secretary

Tanczos said the number of projects to be financed from European funds has rapidly increased, adding the problem has shifted to issues that concern implementation and co-financing.

The secretary of state highlighted that local authorities and other public institutions show reticence towards banks even if they have the necessary funds to finance projects that also benefit from European support.

Tanczos said the main problem public institutions are confronting with is a lack of expertise, adding "it is easier to just ask for money from the budget."

The manager of the "Increasing Economic Competition" operational program, Catalina Melita, said that about 13% of the people whose projects were approved as eligible decided to withdraw as they could not find money to co-finance and go through with their projects.

Within the operational program, about 80% of a total value of EUR3 billion is granted to private companies as state aid, adding expenses that are not exigible might reach 20% of the value of the project.

Increasing economic competition programs are addressed to companies that do not have a more than 13% internal rate of return, which makes banks consider them less eligible to receive loans.

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