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Challenges And Threats About Cost-Benefit Analysis And Absorption Of Structural Funds For Investment Projects

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  • CRISTIAN BUªU

Abstract

The purpose of this article is to present the role of cost-benefit analysis (CBA) in funding investment projects linked to the EU cohesion policy. The purpose of using ex-ante cost-benefit analysis has two aspects. On the one hand, the results of economic analysis must show that deserves and is likely to contribute to the objectives of the Funds. On the other hand, financial analysis is used to assess whether the project needs community support, therefore the so-called deficit financing method is then used to determine the level of EU subsidy. Romania would be in the center of this analysis as one of the recent members of the European Union and, as a consequence, a part of the strategy of integration. Given the relatively short time that could have been benefiting from the structural funds and on the global context of the financial crisis, Romania is facing an underutilization of the allocated funds.

Suggested Citation

  • Cristian Buâªu, 2012. "Challenges And Threats About Cost-Benefit Analysis And Absorption Of Structural Funds For Investment Projects," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 6(1), pages 675-681, November.
    • Handle: RePEc:rom:mancon:v:6:y:2012:i:1:p:675-681
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    File URL: https://conference.management.ase.ro/archives/2012/pdf/85.pdf
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