EC may block EU funding to Romania again, final word expected in March

Romania risks a new call-off in EU funding, as the European Commission keeps EU-financed programs under close scrutiny after problems were spotted last year, said Romania's European Affairs Minister Leonard Orban, on Money Channel TV station. A decision will be taken at the beginning of March, but Orban urged the authorities to act early to avoid any risk. The minister however said payment suspension on all programs was highly improbable and that only one or two programs were at risk. He did not say which programs they were.

The European Commission blocked payments on a line of the Regional Operational program in June last year, after it found irregularities in public acquisitions. The line was re-opened in December. After using EUR 1.2 billion in EU funding so far- a 6.3 percent percent absorption rate of structural and cohesion funds, Romania targets minimum 20 percent real absorption rate for EU funds. The country will have to spend EUR 6.7 billion in 2013 and EUR 1.4 billion this year, but it will have to fight the red tape in the system in order to speed EU fund absorption. editor@romania-insider.com