ECONOMY FINANCE&BANKING

EUR 4 bln in European funds to be lost at absorption rate of 80 pc. How much at 70 pc?

Finance Minister Eugen Teodorovici pointed out yesterday at a special conference that Romania will lose EUR 4 bln in European funds earmarked for the 2007-2013 financial framework if it reaches an absorption rate of 80 per cent. Since European Funds Minister Marius Nica stated the other day that the rate of absorption of European funds will probably stand at 70 per cent, the question is obvious: how high will the losses in unused European funds be. Is it the EUR 7 bln rumoured? Who is responsible for these losses? Teodorovici carries the joke too far. He says that to blame are not the ministers but the “special” civil servants that he himself promoted and hiked their salaries at levels 7-8 times higher than the salaries of civil servants not involved in European projects.
“The explanation is that the problem is represented by those directly involved in the day-to-day needs within these companies and in the contracts in particular. (…) Unfortunately, Romania will lose a lot of money at the end of this financial cycle. This loss has many negative effects. The non-finalized projects have to be financed from two sources: either from the new 2014-2020 financial framework, or from the state budget,” Teodorovici emphasized.
The minister added that starting next week he will verify all ongoing contracts and the companies that did not respect the contractual terms will be removed from those contracts.

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