Romania can use EUR 1 bln EU funds to mitigate COVID-19 crisis

The European Commission will direct more than EUR 1 billion to Romania to help it mitigate the effects of coronavirus (COVID-19), according to a document published by the European Commission's Representation in Romania.

All EU countries have received similar notifications, regarding the financial support the EC can provide for mitigating the COVID-19 crisis.

Out of the EUR 1 bln earmarked for Romania, EUR 483 mln is money the country should have returned because it failed to spend it (after receiving the funds in advance) and EUR 637 mln represents funds re-directed from other structural projects to COVID-19 related programs, Agerpres reported.

In total, the EC has waived the return of EUR 8 bln of such unused money across all EU states.

According to this document, Romania “will receive EUR 483 mln” from the European Commission, as the Commission has renounced this year the obligation to ask Romania to reimburse the unused pre-financing from the structural funds. Separately, EUR 637 mln of structural funds scheduled for disbursement this year will be paid in advance during March and April.

The structural funds earmarked for all EU states this year amount to EUR 29 bln. The structural funds disbursed to Romania (as elsewhere in EU) are aimed to support health systems by financing the purchase of protective equipment, medicines and tests, adapting the healthcare environment to the current situation, ensuring the access of vulnerable people to medical facilities and providing credit for SMEs to alleviate the financial shocks caused by the COVID-19 crisis.

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