Perspectives and Impacts of Accelerating the European Funds Absorption in Romanian Economy

Abstract

This article presents an analysis of the evolution of European funds intended for Romania's financing programs for the financial years 2007-2013 and 2014-2020. The purpose of this approach is to identify the extent to which Romania is able to absorb the European funds allocated to it. This is particularly important in view of the future funds allocated through the new multiannual financial framework 2021-2027, as well as recovery and resilience assistance through the post-pandemic instrument NextGeneration EU. In this regard, we analyse the sectors that enjoy better absorption and those in which the degree of absorption is inadequate, mentioning the main obstacles that determine this situation. The analysis of the evolution of financial flows highlights the fact that the process of using the allocated funds started with delays in Romania. Until the end of April, 2020 (7 th year of implementation for the financial year 2014-2020), the absorption degree of European funds was only of 42.48%, with large differences between destination categories. The effective absorption rate is totally inadequate, leading to the non-achievement of proposed national objectives. We notice that for Romania additional efforts are to be made to increase the rate of European funds absorption. Early preparation of projects, increasing the administrative capacity for planning and managing European funds, a correct and stable ranking of priorities, the adoption of a strategic development plan, represent the key factors for reviving the absorption rate.