Brussels suspends the reimbursement for Romania's EU funds

Brussels authorities have suspended for the second time this year the reimbursement invoices that Romania sent to reclaim money spent through the EU funds financing lines.

The Human Resources program worth EUR 4, 5 billion was suspended earlier in the year and the European Commission (EC) has now ceased payment for more programs- Regional Transport, Environment and Competitiveness, worth a total amount of EUR 15 billion or more than two thirds of the total money available up until the end of 2013. The reimbursement suspension comes after the authorities managed to process invoices of almost EUR 700 million in the first six months of the year. The aim is to speed up the absorption of funds to a target of EUR 4 billion. At the present rate, even without this further suspension only EUR 1.4 billion in funds would have been absorbed by the end of the year. The suspension puts reaching EUR 1.4 billion at risk. "Now we are evaluating the fulfillment of conditions, there will be extensive discussions with European officials. Next we will decide what happens to these programs,” said yesterday Leonard Orban, the Minister of the European Business. The government sees the need to borrow again from the international financial markets to be able to support the payments to beneficiaries of EU funds projects. Thus the average monthly payments of EUR 115 million the state must bear an interest rate of EUR 5 million per year, assuming a 5 percent interest rate. Leonard Orban announced yesterday that the cessation of the reimbursement requests does not require suspension or interruption of payments. He also said that the period in which Romania cannot send such requests in Brussels will be “relatively limited”. Ioana Toader,ioana.toader@romania-insider.com