Romania will have to attract EUR 30 million in European funds every week until the end of this year, to make sure it will get the same level of structural funds from 2014 to 2010, said Johannes Hahn, EU's Commissioner for Regional Policy (in picture left), who recently met Romanian PM Mihai Razvan Ungureanu in Bucharest  (in picture right). 

“Based on our calculation, Romania should get at least the same amount to continue the projects it started and to improve the standard of living for its citizens. So it is important that Romania proves it can use the existing funds,” said Hahn.

The country has to increase the rate of absorption, from the current 6.3 percent, as a prerequisite to getting more money from the EU budget. Romania is still not yet out of the woods on the suspension of EU funding, but it is still on track with the calendar agreed with the EU to repair deficiencies. “After discussions in fall on interruption of payments, Romania has proposed a vast action plan, which needs to be implemented by end-June. Depending on it, we may-or may not give the green light. For the time being, however, there is no proof that Romania is off the track, but there is still a risk,” said Hahn.

The red tape in the system is to blame for the slow EU funds absorption process and the low rate, together with the lack of clear individual responsibilities, which would show who's to congratulate or to blame, depending on the case, the EU Commissioner explained.

Romania wants to attract EUR 6 billion on EU funding this year, which, according to President Traian Basescu, will be key to judging the success of the current PM.

The European Commission said earlier in February that it would block payments on the Human Resources funding line, after the 2011 report found irregularities in the HR operational program in Romania, according to the EC office in Romania. The problems refer to project selection and first level verification in the EUR 3.5 billion HR program called POSDRU, which, according to the regulations on structural funds, trigger a payment hiatus of six months. Payments will re-start after the Audit authorities will confirm problems were solved. Approved projects will continue to receive funding.

After using EUR 1.2 billion in EU funding so far- a 6.3 percent percent absorption rate of structural and cohesion funds, Romania targets minimum 20 percent real absorption rate for EU funds.

editor@romania-insider.com