EU funds absorption rate could reach 15 pct by year end if EC resumes payments

Romania could reach a EU funds absorption rate of “at least” 15 percent by the end of 2012 if the European Commission (EC) decides to resume reimbursements for Romania, said the minister of European affairs Leonard Orban, according to Mediafax.

Four EU-funded programs are presently in pre-suspension phase over suspicions of fraud and poor management.

At the end of October,Romania reported an absorption rate of approximately 10 percent with almost no improvement compared to July when the EC suspended payments for five EU-funded programs – transports, environment, regional development, economic competitiveness and human resources development.

“Bear in mid that this absorption rate of about 10 percent has remained unchanged since July 1 when payments were suspended for the five programs with the largest financial allocation. Meanwhile, reimbursement requests have been prepared and if payments are resumed this requests will be sent to the EC. If this happens, I expect the absorption rate will reach at least 15 percent by year end ” said Orban according to Mediafax.

At the end of July 2012, Orban said that this year the authorities have set the target to increase the absorption rate to a minimum of 20 percent.

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