Romania's EU funds absorption woes are the latest topic for the region from business news group the Economist. It's a familiar story, but reading the Economist's figures is still distressing – an absorption rate of only 7.4 percent, the lowest rate in the EU and a stark reminder that billions of euros are being lost. Time is running out.

Up to EUR 20 billion in funding was made available for between 2007 and 2013 and the Economist refers to the recent warning from new PM Victor Ponta that Romania stands to lose EUR 100 million this year and over EUR 1 billion in 2013 in potential funding for human resources projects alone. Why?

“Amid concerns over corruption and other irregularities,” reads the article, which starts with what is claimed to be an old Romanian proverb “God gives, but he doesn't stuff it into your bag.” This may well be true, but the concept of stuffing money into bags isn't entirely unfamiliar to Romania's politicians and business leaders, given the recent jail sentences in high profile corruption cases.

The familiar reasons for Romania's apparent inability to effectively access EU funds are given – “corruption, a lack of motivation and information, inadequate administrative capacity and major gaps in understanding how EU institutions work.” Romania now has a minister for EU funds, Leonard Orban, and new PM Victor Ponta has promised action and said that using EU money effectively would be his government's priority this year.

However, they must convince the European Commission (EC) that Romania can use funds properly. The EC has shown clearly that payments can be stopped if there are concerns over the management and use of funds. Whatever the means, Romanians must, to quote one of the comments to the article, find a way to "be more absorbent."

Read the Economist article here.

Liam Lever, liam@romania-insider.com