European funds absorption - a possible chance for Romania.

Abstract

In today’s economic crisis in which banks do not have or do not want to give money to loan, the traders do not have resources to develop or even to continue their business; therefore, there remain only a few reliable sources of financing for Romania, international financial institutions (such as the International Monetary Fund, World Bank) and the European funds. For Romania, a possible chance to overcome the crisis is the absorption in a larger proportion of European funds. So far, the absorption of European funds was low. The work highlights the current use of these funds. In the last two years, were allocated structural funds worth EUR 3.1 billion of which were absorbed only EUR 203 million. Although we have a small budget in agriculture, compared to the financial needs of this area within a year of anticrises measures, the European Commission has penalized us with nearly EUR 8.4 million, the money will be borne by the state budget for APIA delays in surface payments. Also, the Sapard payments are suspended because of the shortcomings of management and control. The article analyses the existing obstacles in accessing European funds; bureaucracy, lack of decentralization, cumbersome regulations and long procedures causes a very low capacity to absorb money from the EU. An efficient use of European funds might be to Romania in general and for the Romanian agriculture in particular, a solution to exit the crisis. The work highlights the main ways to increase access to European funds.