Romania runs out of money to co-finance EU projects

Socialist Party President Liviu Dragnea said cuts should not have to be made if the government's programme is followed to the letter. [PSD/ Flickr]

Romania’s regional development minister has told the nation’s mayors that there is no more money left for co-financing European projects, since the limit has already been reached and the country is trying to keep its deficit under 3%. EURACTIV Romania reports.

Sevil Shhaideh said that her ministry had proposed a draft law that would see loans granted from the treasury. “The only impediment is the nationwide lending ceiling that has already been met and exhausted this year,” she explained at a meeting attended by several mayors and members of government.

The President of Romania’s association of mayors (AMR), Robert Negoiţă, asked, “How do we develop European projects if we do not have help with financing and pre-financing?”

Finance Minister Viorel Ştefan assured the mayors that the situation is “being looked at by the treasury”. He added that he was hopeful of “good news”.

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Last year, former Prime Minister Dacian Cioloş awarded 400 million lei (approx. €88 million) through an emergency ordinance to projects initiated by local authorities.

Socialist Party (PSD) leader Liviu Dragnea said Sunday night (19 March) that Ştefan has no reason to be worried if the new government’s programme is implemented point by point.

When asked about the finance minister’s earlier comments that cuts could be made if Romania looks set to break EU deficit rules, Dragnea cut a disappointed figure and questioned why cuts are being considered after just two months.

“If the government programme is implemented point by point then he has no reason to worry, in my opinion. But to talk of spending cuts in March seems rushed to me. It’s my opinion,” added the PSD president.

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