He will get EUR4 billion from the European Union by the end of 2012, which account for 20% of the structural funds allocated. That is considering Romania has been unable to absorb any more than EUR725 million five years from its accession, which account for 3.7% of the EUR19.6 billion funds available.
Beyond an inaugural political speech, this is a huge commitment for the economy. With foreign lines of credit dwindling and becoming more expensive, Romania has no source of cheap funding for economic growth other than European funds. That is why Orban, 50, becomes the most important minister of the Emil Boc government, who will have as his goals cleaning up and getting things moving in the seven ministerial departments working with European funds and subordinated both to their line ministers and to Orban.
“If they won’t let me get things moving I will hand in my resignation,” Orban said on the PRO TV show “After 20 Years” on Sunday morning. He admitted he got the offer to become a minister and take on an extremely bureaucratic process from President Traian Basescu, whose European affairs advisor he had been at some point.
Every government since EU accession has pinned its hopes on the billions of euros coming from the European Union. Yet results have been disastrous and no minister has paid for failing to absorb this “free” money yet.
With the current international turmoil and investors fleeing, the government has to boost the European fund absorption rate to get and inject money into the economy and achieve growth. Over the last ten years, economic growth has come from foreign investors, from loans taken both by companies and individuals, which have now boomeranged, and from government spending beyond the revenue collected.
(English version by Loredana Frățilă-Cristescu)