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Bucharest
May 14, 2021
BUSINESS COMPANIES ECONOMY FINANCE&BANKING

Romania seeks EC’s approval for economy support package

Romania sought the European Commission’s approval for a set of measures to support the economy, one of the measures envisaged by Minister of European Funds Marcel Bolos being the non-reimbursable working capital.

According to a Ministry statement, under the Coronavirus Response Investment Initiative (CRII and CRII +) initiated by the European Commission, the Ministry of European Funds has recently advocated a set of measures to enable the concrete fight against the negative effects of the pandemic.

“The package requested by Romania has two levels: flexibility and the transfer between funds, respectively ensuring working capital for businesses in need of support. It is important to note that this is about non-reimbursable working capital,” said Marcel Bolos, according to Agerpres.

The most important measures proposed by Romania, and which were approved by the EC are: flexible allocations between funds (the European Regional Development Fund, the European Social Fund and the Cohesion Fund), flexible fund allocations between the operational programs, flexible fund allocations between region categories, that is supporting all the Romanian localities affected by COVID-19, reducing the thematic concentration requirements – specifically providing the possibility of transfers from research to the business environment, the full co-financing of the declared expenses beginning with July 1 until June 30, 2021, and renouncing the request for the ex-ante assessment of the financial instruments for the funding of working capital.

“We are not talking about additional allocations, but about a re-prioritization of the needs according to the current social and economic realities without affecting the targets envisaged by Romania. In response to the current pandemic, the European Commission pursues flexibility in the use of European Structural and Investment Funds for the combat of the effects of the sanitary and economic crises. The measures submitted to the European Parliament and the Council of the European Union provide for two proposals to amend EU Regulation No. 223/2014 by introducing specific measures, but also to amend EU Regulation No. 1303/2013. The aim of the Commission’s Initiative is the quick and efficient mobilization of the financing available from the European Structural and Investment Funds (ESIF),” Bolos explained.

The total allocation is 37 billion euros, but requires complementary decision-making for each state, in order to help and protect the most vulnerable citizens, says the Ministry of European Funds.

Minister Marcel Bolos also intends to move forward the start of the implementation of the future Operational Program for the Combat of Poverty, so that it becomes operational as of January 1, 2021, in order to support the Romanians affected by the harsh economic context. The program is financed from the funds allocated to Romania in the 2021 – 2027 programming period.

The Operational Program for the Combat of Poverty will finance the following intervention types: assisting disadvantaged people with food, supplies and childcare; social inclusion, such as combating school dropout, according to community-led local development strategies, respectively activities outside community-led local development strategies, such as deinstitutionalization, the combat of poverty or migrants; employment and health social services, according to the community-led local development strategies; improvement and development of social, educational, recreational and sports infrastructure.

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