Some Considerations Regarding The Absorption Of European Funds In Romania

For sustainable economic growth, Romania needs investment and exports. European funds and foreign investment contribute to the formation of Romanian capital, as alternative to the lack of financing of the banking system. In the last 10 years, of the amounts collected from the EU. 17, 8 billion euros were used in the public sector, and 14, 8 billion in the private sector. In the period 2005-2015 Romania received from the United States 31, 8 billion, of which 12, 2 billion were invested in fixed capital, and 19.2 billion euros were current expenditure. For the 2007-2013 financial period, only 20% of the amounts absorbed were used in the real economy, to support competitiveness and to set up agricultural capacities. We noticed that these amounts were neither sufficient nor well-used. For the 2007-2013 financial year, the European Commission has produced an activity report on the Romanian use of European funds. Thus, suspicions of fraud and irregularities were found, but they are insignificant. The European funds allocated to the financial year 2007 have not been fully utilized for the following reasons: incompetence in fund management, delay in Sectorial Operational Programs and Management Authority launch, unsustainable projects, lack of communication between the Romanian authorities and those in Brussels regarding the estimation of payments on Projects and lack of Informing beneficiaries of the use of non-reimbursable funds. Some of these irregularities are also found in the current financial exercise.