Sustainability of public co-financing of investment projects with EU financial assistance in Romania

Anca Dachin and Monica Gabriela Gherman
Additional contact information
Anca Dachin: Bucharest University of Economic Studies, Romania
Monica Gabriela Gherman: Bucharest University of Economic Studies, Romania

Theoretical and Applied Economics, 2014, vol. XXI, issue 3(592), 45-56

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. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://store.ectap.ro/articole/961.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=961&rid=108 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxi:y:2014:i:3(592):p:45-56

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().