The European Commission will 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.

Romania’s European Affairs Minister Leonard Orban recently warned the EC might interrupt payments on one of the financing lines available for Romania, without naming the affected program. Prime Minister Mihai - Razvan Ungureanu recently asked for the dismissal director of the POSDRU funding line, Carmen Ionel, for bad management. Ionel resigned yesterday (February 16).

The European Commission blocked payments on a line of the Regional Operational program in June last year, after it found irregularities in public acquisitions. The line was re-opened in December.

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. The country will have to spend EUR 6.7 billion in 2013 and EUR 1.4 billion this year, but it will have to fight the red tape in the system in order to speed EU fund absorption.

editor@romania-insider.com