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Bucharest
July 1, 2022
BUSINESS

Romania in vicious circle between IMF and EC calculations

In this sense, PM Ponta asked EC President Jose Manuel Barroso for help. Thus, if financial corrections are made the deficit target agreed with the IMF will be overshot.The government has asked for EC support in identifying a solution concerning the financial corrections that have to be applied to Romania, after it was discovered that if these corrections, of up to 25 per cent, are applied this year Romania will overshoot the deficit target agreed with the IMF, Premier Ponta stated.Asked by journalists whether he replied to the EC President’s letter on the absorption of European funds, the Premier pointed out that the main talks that they had last Wednesday in Bucharest centered precisely on the issue of EU funds. “Here we need the Commission’s support in a single but otherwise essential point: the adjustments that were necessary in what concerns the procedures have been made since November 2011 and we are ready to unfreeze POSDRU and the other programmes, but for what was made wrong in 2009-2011 we have to bear financial corrections of up to 25 per cent,” the Premier stated. He opined that Romania currently finds itself in a vicious circle between the IMF’s and the European Commission’s calculation methods and in this sense he asked EC President Jose Manuel Barroso for help in finding a solution for the calculation of the deficit. “Thus, the programmes can be unblocked immediately after we accept paying now what was done wrong in 2009-2011,” Ponta said. However, he pointed out that he is convinced the government will “receive a solution” for this calculation conundrum. Mediafax wrote on Thursday that the EC President told Premier Victor Ponta that the government’s plan to improve the absorption of EU funds includes only short-term solutions and does not solve structural deficiencies on the long term, and conditioned the resumption of payments on solving the fraud problems. The warning was sent to Premier Victor Ponta last week in a letter written by Commissioner for Regional Policy Johannes Hahn on behalf of EC President Jose Manuel Barroso, official sources stated. The letter represents an answer to the Romanian government’s plan to improve the absorption of European funds, a plan that Premier Ponta handed to the EC President during the visit he paid to Brussels one month ago and that formed the basis of the talks that the two had on Wednesday in Bucharest.

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