Romania to raise EU funds absorption rate to 20% in 2012.

By bne IntelliNews November 28, 2011
Romania will raise the EU funds absorption rate to 20% in 2012, according to PM Emil Boc, Agerpres reported. The rate may further increase to 25%. The Government aims to receive EU funds amounted to at least EUR 6bn - EUR 2.5bn for agriculture and EUR 3.5bn cohesion funds. We remind that in late October, EC's representative Benoit Nadler commented that the low speed of absorbing funds from the EU budget is dramatic not only because the country risks losing part of the money earmarked [for 2007-2013] but also because this impedes the country's convergence toward the other EU states. Nadler mentioned three causes for the low absorption rate, quoted at 3.5% [of the total 2007-2013 earmarking]: technical aspects of the auctions, the low capacity of the final recipients and the poor functioning of the local fund management institutions. The procedures at the level of the local institution for the management of EU funds can be simplified significantly, Nadler stressed. The local authorities offset their low capacity with an excess of procedures [aimed at dissipating the responsibility], he explained.
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