Resumption of payments for European funds, 'conditional'

Romania European Commission announced Romania that it has initiated the procedure of partial or total pre-suspension of transport programs, regional and competitiveness, co-financed by EU structural funds.

Romania has two months to remedy the problems.

Resumption of payments is not quite simple. That's because, after Romanian authorities consider that they took all the measures to correct the problems, we also need a report of the national audit authorities to be sent to the European Commission.

If this report is positive, as well as the Commission's assessments, then the payments to Romania are resumed.

Except the beneficiaries of projects that were detected fraud, the rest of beneficiaries with remaining projects included in programs wholly or partially suspended, must not, in principle, fear that they will remain without money.

That's because they are taking money directly from the Romanian government which then has to take amounts from the European Commission.

The state pays

Basically, are suspended payments to the state, but the state pockets are not quite as full, clearly Bucharest has the interest to convince the European Commission as soon as possible that we have an effective system of management and control regarding the way they are using European money.

Essentially, Romanian projects must meet legal regulations, be economically viable and purchases with European money to be transparent and fair.

It is true that since December last year until now, the Romanian authorities have taken several legislative measures, institutional and procedural, but, says the European Affairs Minister, it takes time for the system to get to work well and so clearly and convincingly enough for the Romanian Audit Authority and the European Commission.

Procurement regulation

So far, the government approved the recent initiatives of the Ministry of European Affairs through which has been made orderliness in the procedures, documentation and verification for procurement, just always complained of the European Commission.

But, in addition to resuming payments to the three programs, Romania must now obtain lower percentages in negotiations with the Commission for financial corrections proposed by Brussels in august.

Commission wants corrections from 10 to 25 percent of payments for transportation programs, regional competitiveness and the environment.

If Romania does not accept these corrections - loses all the amounts, but if it agrees, then money can be reused.

European Affairs Minister, Leonard Orban, explained that money from troubled projects can be redirected to other projects and already has a list of such projects, well done, for which however, so far there was no money.

How to solve the problem

In the letters of pre-suspension, the three programs include actions to be taken at national level and the practical measures so that in Romania to exist an effective system to manage and control how they are using European money.

The Commission recommends no new measures, it is about the same hints discussed over the years with the Romanian authorities.

Essentially, it has to be done in such way, so that Romanian projects meet legal regulations, and be economically viable.

A black spot are also the procurements, which should become more transparent and fair.

It is true that the situation can be saved, so that in addition to irregularities, Romania was not all right in spending any actual money.

For example, only in transport, 2007-2013, Romania has allocated EU funds over 4.50 billion euros, of which however were effectively absorbed by the end of September, only about 6 percent and a half.

Also, for competitiveness we have provided 2.50 billion euros of which we only took just under 7 percent.

The history of discontent to Brussels

For nearly three years, the Commission has discussed with the Romanian authorities about the increased capacity to absorb EU funds that raised issues and proposed solutions so that Romania will not lose money from the EU.

In December 2010, following an initiative by the EC President José Manuel Barroso, Romania was required to develop and implement an action plan with concrete measures to correct the deficiencies found.

In addition, Romania has benefited from foreign expertise from international financial institutions who assisted in the preparation and implementation of projects.

In 2010 and 2011, the European Commission and the Romanian Audit made ​​a series of audits and after that the Commission identified serious shortcomings in the management and control of structural funds in Romania and interrupted the Development Fund payments Fund (ERDF) and the Cohesion Fund in mid-2011.

In December 2011, the Commission resumed the payments after Romania strongly committed to improve the management and control system for public procurement.

The European Commission urged the Romanian authorities to show, by the middle of this year, that the system works effectively.

But, examinations made ​​by our audit authorities and the Commission further revealed that there are serious deficiencies.

Thus, the Commission has decided that it can not yet make payments, so that the European taxpayers' money not be affected anymore.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University