Commission Report 2002 (Romania)

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 21: Regional policy and co-ordination of structural instruments

Progress since the last Regular Report

Since the last Regular Report, limited progress has been made in preparing for the implementation of structural policies.

No further developments can be reported regarding territorial organisation or with the legislative framework.

With regard to institutional structures, Romania has identified the preliminary institutional and programming structure for Structural Funds implementation as well as a preliminary structure for operational programmes. Two Government Decisions of January 2002 designated the management structures for implementation of the European Social Fund: the Ministry of Labour and Social Solidarity has been designated as Managing Authority and the National Agency for Employment as Paying Authority. Inter-ministerial working groups have been established which should lead to improved administrative co-ordination at the national level. A Government Decision from February 2002 limited the Ministry of Development and Prognosis' activities to the central level, and eliminated the territorial offices foreseen in a former Government Decision.

With regard to programming, in December 2001 Romania submitted its National Development Plan (NDP) 2002-2005 to the Commission - which presented its comments in March 2002.

No major developments can be reported with preparations for implementing the partnership principle or with regard to monitoring and evaluation, financial management and control.

Although efforts have been made to develop the infrastructure for producing regional statistics, and staff from regional offices have received specialised training, there is still a lack of reliable statistics at the regional level.

Overall assessment

Romania`s 1998 Regional Development Act established a provisional NUTS classification designating eight development regions corresponding to NUTS level II, with 42 counties corresponding to NUTS level III. This classification was agreed with the Commission.

Romania has already started to identify the bodies responsible for the preparation and implementation of the Structural Funds and the Cohesion Fund after accession. However, there is still a need for continued efforts and the Romanian authorities should further elaborate the management and programming structures at both national and regional levels. Considerable additional preparation is needed to bring the capacity of the Romanian administration up to the level required for Structural Funds and Cohesion Fund implementation. Substantial efforts are also needed to develop the structures and co-ordination mechanisms to manage financial assistance from the European Social Fund in the context of the European Employment Strategy and the inclusion process.

Significant efforts will be needed to improve the quality of the existing NDP before it can serve as the basis for a future development plan. The NDP should be further embedded into the national budgetary and policy-making processes. The programming work should continue.

With regard to programming, the capacity to discuss and clarify development priorities is very limited at both national and regional levels. The lack of co-ordination and co-operation between ministries, as well as with relevant agencies and social and economic partners, remains a problem and there should be further progress in the preparation of projects (the project pipeline).

A considerable amount of work will be necessary before Romania meets Structural Funds requirements for monitoring and evaluation.

Romania`s progress in the field of financial management and control remains insufficient.

Conclusion

In its 1997 Opinion, the Commission concluded that Romania showed an increasing political awareness of the need for a regional policy. Romania`s administrative capacity to manage EC funds and conduct an integrated regional development policy clearly needed to be improved. The Opinion pointed out that significant work was still required in defining a legal basis, identifying and clarifying the respective roles and responsibilities of existing authorities and strengthening an adequate administrative structure before Romania would be able to apply Community rules and channel the funds from the EC structural policies.

Since the Opinion, Romania has made progress in legislative terms and, more recently, has started to develop its administrative capacity. However, there is still a need for continued efforts and Romania does not yet have a clear and consolidated cohesion policy.

Negotiations on this chapter continue. Romania has not requested any transitional arrangements.

Romania should focus further efforts on designing the management and implementation system for the Structural Funds. Particular attention should be given to clarifying the role of the regional levels and strengthening inter-ministerial co-operation and partnership. Systems and procedures for effective monitoring, financial management and control should be established. Administrative capacity needs to be significantly improved with regard to programming, including identification and preparation of projects.

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