European Commission (EC) will grant faster and easier access to tens of billions of euros in European Union (EU) funds for Romania, Portugal, Hungary, Latvia, Ireland and Greece. Increasing cofinancing rates for EU funds will help boosting European economic recovery, a European Commission press release informs.
EC agreed, yesterday, to measures that should make a significant contribution in the mentioned countries to getting the economies back on track. Under the proposal, the six countries would be asked to contribute less to projects that they currently co-finance with the European Union. As a result, they will have to find less national match-funding at a time when their domestic budgets are under considerable pressure and therefore programmes that have not been executed so far for lack of national funding may be launched and inject fresh money in the economy.
“These proposals are an exceptional response to exceptional circumstances. Accelerating these funds, combined with the financial assistance programmes, demonstrate the Commission’s determination to boost prosperity and competitiveness in the countries mostly hit after the financial crisis – thereby contributing to a kind of ‘Marshall Plan’ for economic recovery”, the President of the European Commission José Manuel Barroso stated.
The EU contribution would be increased to a maximum of 95 pc if requested by a Member State concerned. This should be accompanied by a prioritisation of projects focusing on growth and employment, such as retraining workers, setting up business clusters or investing in transport infrastructure. In this way the level of execution can be increased, absorption augmented and faster extra money would be injected into the economy.