Romania to use EUR 680 mln EU funds to mitigate Covid-19 effects

Romania will use EUR 680 million worth of EU funds to support the medical system and business environment, in the context of the coronavirus (Covid-19) pandemic, EU funds minister Marcel Bolos announced on Thursday, March 19.

Out of the EUR 680 mln announced by Bolos, EUR 300 mln will be used to pay benefits (75% of their wages) to employees sent in technical unemployment by companies affected by the Covid-19 crisis, based on a Government decision, while the remaining EUR 350 mln will be used for the acquisition of medical equipment for hospitals.

Thus, for the payment of the employees in technical unemployment, the Ministry of European Funds has earmarked the equivalent of about 620,000 salaries.

Companies from the economic sectors that face difficulties such as tourism, hospitality, transport, and import-export will be helped. The European funds will be accessed by the National Agency for Employment (ANOFM), which is subordinated to the Labor Ministry, and this institution will provide financial support to the employees who enter into technical unemployment.

Another EUR 350 mln is needed for the healthcare system, including for the purchase of Covid-19 tests, as well as protective equipment and mechanical ventilation equipment. The food expenses allocated to the quarantined population for 14 days amount to EUR 30 mln, which will cover about 335,000 people.

In separate news, Concordia trade federation suggested that Romania could use up to EUR 3 billion from the EUR 37 bln budget earmarked by the European Union to mitigate Covid-19 effects. Under this emergency budget, the money can be first spent, then justified by bureaucratic procedures - Concordia executive manager Radu Burnete pointed out.

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