Romanian PM: Better EU fund absorption, but maybe higher budget deficit

Romania would be better off with a 2% budget deficit instead of 1.4% if it attracted EUR 8 billion from EU funding, said the country’s Prime Minister Victor Ponta (pictured, left) at the EU-South-Eastern Europe Summit in Bucharest yesterday, quoted by Mediafax. Romania is close to a 50% EU fund absorption rate, but it needs to attract 50% of the cohesion funds next year. Meanwhile, the Government faces issues distributing money from the budget to support co-financing. “I was wondering whether not better for Europe to have a 2% deficit in Romania, but a EUR 8 billion EU funding absorption, direct investments into infrastructure and economic projects. But this is a question for the European beaurocracy and the reality in our country,” said Ponta. The Romanian state has to co-finance EU-funded projects by 15%. editor@romania-insider.com