The Romanian Government has asked the European Commission to allocate EUR 200 million to rural infrastructure programs and  cancel the non-bankable projects, worth hundreds of millions of euros from 2008-2010, for which the beneficiaries have not made any payments in the recent years. If given, the funds will be earmarked for new agricultural projects.

The government also decided that the draft budget for next year should include 9 percent VAT on agro-based food. Romania's Government wants to set up a credit line for rural development in partnership with the banks to allow speedy effective access to EU funds and pick up the EUR 1 billion slack caused by the completion of an EU rural development program, official sources told the Mediafax news service.

Government intends to increase the funding for rural infrastructure but needs the approval at a European level.

“EUR 32 million for 16 projects was already identified  and a request for EUR 200 million sent to the European Commission,” said an official source.

Ioana Toader, ioana.toader@romania-insider.com

(photo source: Gov.ro; in picture, left: PM Victor Ponta, right: Agricultre Minister Daniel Constantin)