EU funds for Romania: main financing programs for the public sector

The EU structural funds absorption represents an opportunity to sustain economic growth and to reduce the development gap, which under the circumstances of international financial crisis becomes a new challenge for Romania. Romania-insider.com takes a look at the operational programs designed to improve the economic and social conditions in Romania. By Alexandra Fodor During the crisis period, the use of European funds could become an important source of financing for the Romanian economy. So far, Romania's absorption rate of European funds was low. The rate of absorption of structural funds for 2007-2010 is of 13.48 percent, according to data released by the Ministry of Public Finance in September. The development of local infrastructure in Romania depends on European Funds. The more EU-financed projects are set-up by city halls, local and county councils, the more successful regions become. Some EU funds alloted to local authorities for regional development come through the Ministry of Regional Development and Tourism for projects related to the improvement of infrastructure and for the development of regional and local tourism. The Ministry of Transports deals with fund for investments in the modernization of the transport infrastructure. The Ministry of Agriculture and Rural Development deal with investments in rural infrastructure. But most structural funds are in the hands of the Ministry of Environment and Forests, which is responsible for managing the spending of EUR 5 billion of EU cash. For the public sector, the main national programs are: The Regional Operational Program managed by the Ministry of Regional Development and Tourism has a budget of EUR 4 billion and promotes the improvement of regional and local public infrastructure, strengthening of regional and local business environment, development of regional and local tourism, sustainable urban development. The Operational Program for Environment managed by the Ministry of Environment and Forests, has a budget of EUR 5 billion and its objective is to protect and improve the environment and the living standards in Romania. The Operational Program Administrative Capacity Development managed by the Ministry of Administration and Interior has a budget of EUR 1 billion and its main objective is to create a more efficient public administration. The Operational Program for Fisheries managed by the Ministry of Agriculture and Rural Development, has a budget of