Romania "might receive additional funding from EU"

The President of the European Commission, José Manuel Barosso, and President Traian Băsescu. Photo: Reuters.

The President of the European Commission, José Manuel Barosso, stated that, within the last six months, he had noticed a number of improvements in Romania’s capacity to absorb structural funds.

On Tuesday, José Manuel Barosso asked President Traian Băsescu, who was in Brussels at the time, to become personally involved in accelerating the absorption of European funding, considering the fact that Romania might be granted an additional 10 percent to this funding.

"We have seen some positive developments over the last six months and I have urged the President to intensify his personal commitment on this issue. Romania is one of the countries that would benefit from the Commission proposal to ‘top up’ payments to the countries under adjustment programmes by increasing EU co-financing with 10 percent."

"This proposal made by the Commission was already accepted by all member states and I thank them for that. Now I expect that it will be very soon finalised with the support of the European Parliament", José Manuel Barosso stated.

The President of the European Commission, José Manuel Barosso, believes that one of the best ways to reach a rapid economic growth is to use money from the European structural funds.

José Manuel Barosso said that fiscal consolidation is needed in Europe, as well as economic growth, the latter being one of the components of the set of measures for overcoming the crisis, which has been discussed at the end of the week, and is also on the agenda of the European heads of state and government for tomorrow evening.

"A quick decision is needed"

President Traian Băsescu responded that, together with the President of the European Commission, he had elaborated an analysis concerning the ways in which the absorption of Community funds could be accelerated.

Traian Băsescu also stated that Romania respected the enormous effort which the states contributing to the European Union were making, but that a quick decision was needed regarding the solutions for Greece.

"We have discussed the matter and I have showed president Barosso the implications which a delay in making decisions might have on Romania."

"We respect the enormous effort which the contributing states are making, but we need a quick decision, not only in Romania, but also in other states; at the same time, I think we need economic accession, more than ever before, which would direct us towards creating a united Europe”, Traian Băsescu stated.

The two presidents also discussed the problems arising from the planned recapitalisation of European banks.

President Traian Băsescu declared himself satisfied with the reassurance offered by the President of the European Commission, who promised to take into account the concern Romania had expressed at the European Council held Sunday, regarding the fact that the recapitalisation of banks in the euro area might not have taken into consideration the need to maintain the capital flows of European banks on the Romanian market.

President Traian Băsescu issued a warning with regard to the risks which a two-speed Europe might have in the context of negotiations for overcoming the crisis in the euro area, and emphasised the need to make decisions at the special summit for the euro area, which will take place tomorrow.

"I have underlined the fact that decisions will have to be made tomorrow. Of course, we cannot speak in the name of the states in the euro area. We are fully aware of the enormous financial effort which countries such as Germany, France, Holland and other contributing states have had to make.

At the same time, however, we have discussed and shown President Barroso the implications of delays in making decisions upon Romania.

"As I was emphasising in the press statement on Monday, from 1 August until now, Romania’s CDS has increased from 137 to 377 for five-year credits, as a consequence of the problems in Greece", President Traian Băsescu declared.

During the statements given together with President Băsescu, the President of the European Commission seemed confident that, at the tomorrow’s meeting, the leaders from the euro area will reach the desired outcomes for stabilising the euro area.

Translated by: Cristina Baciu
MA Student, MTTLC, Bucharest University