The European Commission pledges up to 95 percent co-financing for EU projects in Romania, starting 2012

Newsroom 02/08/2011 | 17:43

The European Commission is trying to get EU’s most troubled economies on track by increasing co-financing rates of EU funds. The troubled club comprises of Greece, Hungary, Ireland, Latvia, Portugal and Romania. This measure allows earlier reimbursement of funds already committed under EU cohesion policy, rural development and fisheries. The EU contribution would increase to a maximum of 95 percent if requested by a Member State concerned. The projects that will benefit from this measure should focus on growth and employment, such as retraining workers, setting up business clusters or investing in transport infrastructure. In this way, the level of execution can be increased, absorption augmented and extra money injected into the economy faster. The plan is expected to be fully functional by early 2012.

“These proposals are an exceptional response to exceptional circumstances. Accelerating these funds, combined with the financial assistance programmes, demonstrate the Commission’s determination to boost prosperity and competitiveness in the countries mostly hit after the financial crisis – thereby contributing to a kind of “Marshall Plan” for economic recovery. This decision will inject essential funding into national economies, while reducing the pressure for co-financing of the projects by the national budgets”, said Jose Manuel Barroso, the President of the European Commission

The maximum impact of the new co-financing system for Romania will be EUR 714 million, forecasts the Commission. Total disbursements made by EU, until June 2011, for EU funded projects in Romania reached EUR 5 billion.