Romania may lose EU funds due to Brexit

Romania stands to lose EU funds if Great Britain decides to leave the European Union following a referendum on the country's membership to take place on June 23. This is the biggest risk for Romania, followed by the risk of local currency depreciation against the euro and the US dollar, according to Dan Bucsa, an economist at UniCredit Bank in London, reports local News.ro. “If Britain leaves the European Union with its chunk of funds (contribution to the EU budget – e.n.), I think Romania will be the most affected because Poland and Hungary are capable of absorbing EU funds much faster and we will remain last, as usual, and there will be no more money for us. So the risk is much higher for us, and for the Czechs and Slovaks,” Dan Bucsa said. He added that Romania managed to absorb EU funds representing 2.5% of its GDP in 2015, but that all the states would have lower absorption this year, as the new financing programs (for the 2014-2020 period) have just started. The Brexit may affect Romania in terms of exports, Britain being the fourth biggest export market for Romania. The 136,000 Romanians working in the UK may also be affected, but they will probably go to other EU states, such as Germany rather than come back to Romania, Bucsa thinks. editor@romania-insider.com