Financing of Rural Development in Romania - Present and Perspectives

Throughout the evolution of Common Agricultural Policy, rural development policy has gained a more and more enhanced attention, enjoying today of an important financial support of about 10% of the Community budget. In Romania, as in the other Member States, funding the rural development measures is achieved both from the European Union budget by the European Agricultural Fund for Rural Development and from national sources from the state budget. The aim of the research is to analyze the current financing mechanism for rural development in Romania and new regulations on 2014-2020. For the current programming period 2007-2013, Romania benefits from Community funds aimed at supporting the rural space in the amount of (sic) 8.124,2 billion, an important amount which classifies our country on fourth place in total EU member countries. However, an important issue that needs to focus on is related to the capacity to absorb these funds. Romania has failed unfortunately to an appropriate absorption of European funds for rural development registering by the end of March 2013 an absorption rate of only 47.64% and a degree of contraction of only 51.46%. For the period 2014-2020, the budget of Pillar II-Rural Development is expected to be as consistent, around E101.2 billion, broken down by countries according to "objective criteria and past performance." Romania is responsible to correct own mistakes so far and to prepare for the best possible absorption of these funds, as sustainable rural development requires, in our view, firstly, of a fair allocation of financial resources.