Home / POLITICS / Gov’t has no money for co-funding projects with EU funds run by local authorities. PSD’s Dragnea criticizes Fin Min for talking about expenditure cuts
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Gov’t has no money for co-funding projects with EU funds run by local authorities. PSD’s Dragnea criticizes Fin Min for talking about expenditure cuts

The government has no more money to co-find the projects with EU funds run by local authorities, as Deputy PM Sevil Shhaideh has announced the borrowing ceiling at national level has been reached for 2017. According to ziare.com this means the mayors would not be able to conduct investments with European money.

The situation has become known during a meeting between the government and several mayors.

“The ministry (for development – our note) has initiated a draft bill for granting loans from the treasury The only impediment is the borrowing ceiling at national level, which has already been reached,” minister Shhaideh said.

Finance Minister Viorel Stefan added that he will try to find solutions. “We have a survey at the treasury and public debt directorate and we hope to have good news,” Stefan said.

Last week the finance minister said that, due to lower revenues to the state budget, he might decide upon expenditure cuts, in order not to exceed the 3% of GDP budget deficit target.

During the election campaign, PSD promised a record absorption of European Funds of RON 26.4 billion.

Dragnea criticized Fin Min

Social-democrat leader Liviu Dragnea has criticized Sunday evening the Finance Minister Viorel Stefan, telling him not to worry and to implement the governing programme step by step. “After only two months he is already talking about cuts,” Dragnea said.

“I haven’t had the chance to speak with him; I believe the Premier should talks to him, not the Chamber Speaker. During a party meeting I will ask him about this. He has no reason to be worried. If the governing programme is implemented point by point, he has no reason to be worried. My opinion is that is a little bit hasty to talk about expenditure cuts in March,” the PSD leader said.

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About Valeriu Lazar