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European Commission adopts partnership agreement
The European Commission has adopted a partnership agreement with Romania on using EU structural and investment funds for growth and jobs between 2014-2020. Taxand Romania takes a look at the agreement, confirmed on 6 August 2014.
The partnership agreement includes 5 EU structural and investment funds: European Regional Development Fund, Cohesion Fund, European Agricultural Fund for Rural Development, European Social Fund and European Maritime and Fisheries Fund. The approved funding is €23 billion in total under the Cohesion Policy over 2014 - 2020 (current prices, including European Territorial Cooperation funding and the allocation for the Youth Employment Initiative).
The agreement has bold targets, aiming to reduce the unemployment rate, develop infrastructure for sustaining a good transportation network, encourage the R&D sector, promote low-carbon and energy efficiency, modernise the administrative body and improve the quality of public services.
Certain measures have already been performed, such as the reform of the tax administration finalised in August 2013, which reorganised the tax administrative units by taking into account the main geographical regions ensuring a coherent public administration on all levels.
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Fiscal measures play a significant role in sustaining and encouraging investors and entrepreneurs to start and grow business in Romania. The approval of the partnership agreement for 2014-2020 is a positive signal for Romania and the successful absorption of the allocated EU funds will highly depend on the other measures imposed by the government to sustain economic growth.