EC lowers some member states’ co-financing contribution, saves Romania EUR 714 mln

Romania will contribute less to projects that it currently co-finances with the European Union, according to a recent European Commission decision which aims at getting some of the EU's most troubled economies back on track. This measure would save Romania some EUR 714 million, in a plan which has been compared by the EC president José Manuel Barroso to the Marshall Plan. “The Commission makes available for Greece, Ireland, Portugal, Romania, Latvia and Hungary, supplementary EU co financing, vital for growth and competitiveness-boosting projects in each one of these countries. As a result, they will have to find less national match-funding at a time when their domestic budgets are under considerable pressure and therefore programmes that have not been executed so far for lack of national funding may be launched and inject fresh money in the economy,” according to the EC. The Commission is proposing to the European Parliament and the Council to adjust the current system of EU co-financing in cohesion, fisheries and rural development policies for Greece, Ireland, Portugal, Romania, Latvia and Hungary. Each member state needs to submit a request to benefit from this new system. "These proposals are an exceptional response to exceptional circumstances. Accelerating these funds, combined with the financial assistance programmes, demonstrate the Commission's determination to boost prosperity and competitiveness in the countries mostly hit after the financial crisis – thereby contributing to a kind of 'Marshall Plan' for economic recovery. This decision will inject essential funding into national economies, while reducing the pressure for the co-financing of the projects by the national budgets. I now call on the European Parliament and the Council to urgently approve the decision, in order to get money on the ground by early next year," said the President of the European Commission José Manuel Barroso. The EU contribution would be increased to a maximum of 95 percent if requested by a Member State concerned. The biggest impact of the measure would fall on Greece, which saves EUR 879 million, while Ireland, only EUR 98 million. More about this topic, here. editor@romania-insider.com (photo source: European Commission)