Theoretical and Applied Economics
No. 3 / 2014 (592)
Sustainability of public co-financing of investment projects with EU financial assistance in Romania
Bucharest University of Economic Studies, Romania
Monica Gabriela GHERMAN
Bucharest University of Economic Studies, Romania
Abstract. The public sector capacity of the EU Member States to access the European funds depends highly on the sustainability of their government budgets. According to the European Commission assessment, Romania is not facing a risk of fiscal stress in the short run. However the effects of the economic crisis and the vision with a predominantly social character regarding the public expenditures have contributed to the limitation of resources allocated for economic development. The low level of absorption of the European funds in Romania means implicit losses for the national economy, but a higher level could have been a cause for excessive budget deficit. In order to reduce the pressure on the state budget the government aims at being committed mainly in investment projects with EU financial assistance. This reflects the substitution of the state own financial resources with foreign funds, therefore the additionality effect initially wanted by the EU decreases. The paper evaluates the public investment effort in Romania under the Fiscal Pact limit on deficit and the conditionalities negotiated with IMF, as well as its effects on the economy and budget deficit.
Keywords: additionality, public investment, co-financing of European funds, budget deficit.
Contents
- Assessment modalities of the Master Plan
for the Romanian tourism development 2007-2026
Aurelia-Felicia STĂNCIOIU
Andreea BOTOŞ
Nicolae TEODORESCU
Anamaria-Cătălina RADU
Ion PÂRGARU
- Frameworks for a sustainable development
indicators system
Camelia-Daniela HAŢEGAN
Clementina IVAN-UNGUREANU
- Sustainability of public co-financing of investment projects with EU financial assistance in Romania
Anca DACHIN
Monica Gabriela GHERMAN
- Time series analysis in loan management
information systems
Julian VASILEV
- The impact of the image of the organization
in terms of the online communication paradigm
Diana Andreia HRISTACHE
Claudia Elena PAICU
Nilgün ISMAIL
- Why liquidity interventions are they optimal in the case
of Morocco for financial stability?
Abouch MOHAMED
Firano ZAKARIA
Abouch Mohamed AMINE
- Global European economic model
Cristina BURGHELEA
Anda GHEORGHIU
Cristiana TINDECHE
Anca GHEORGHIU
- Evolutions and prospects in Romania’s economy
Mihaela Daniela NICULESCU
Miron DUMITRESCU
Andrei Mihai CRISTEA
Oana Camelia IACOB
- Choosing the career path –
An unemployment enhancer factor
Ortansa FLOREA (MOISE)