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Study: the managers of Romania estimate an economic recovery in 2022
The managers of Romania estimate an economic recovery in 2022, considering the European funds as being the main chance for economic recovery, according to a study made in Romania by Horvath&Partners (HuP), company for consultancy in management with over 1,000 experts and offices in Europe and Middle East.
The study shows that Romania must organise an efficient National Strategy for the use of European funds and the steps which will allow the whole absorption and Romania must be able to absorb approximately one billion euro each month from the EU funds.
According to that study, the majority of the executives in Romania consider the EU funds as the main chance for economic recovery, 53% saying they are very interested in the subject. The study shows that the majority of the executives do not see a complete economic recovery in 2021.
The hope to come back to the level of 2019 is connected to 2022: approximately 80% of the interviewees in the international study, 60% namely of the one made in Romania.
It needs to be said that the study was made mostly during 2020, before what we call ‘ the second or third wave’ of the pandemics, as a result it is possible that these results could be rather optimistic’.
Similarly, the national strategy for investments harmonised with Green Deal is a priority for Romania, according to Horvath&Partners. The main targets of Green Deal at the level of the EU until 2030, aims at the growth of energy efficiency by 33.5%, the increase of the share of renewable resources for energy by 32% and the reduction of greenhouse gas emissions by at least 55%.
According to the Study CxO, Green Deal is seen in the priorities of the executives: digitisation and decarbonation are at the top of the agenda but innovation is not.
From Romania’s perspective, Green Deal is mainly a chance for redefining economic competition. Over the last years, Romania has recorded one of the highest prices of electricity in the European Union on the en-gros market, in 2018 with the highest fourth price after Cyprus, Greece and Spain, according to the Eurostat. The same trend was kept in 2019 as well, the increase being approximately 20%, after a growth of 16% in 2018, due to constant demand. The Horvath&Partners representatives consider that, if the lack of competition of the electricity prices is kept over a long period of time, this risks to affect the competition of all industries.
‘Romania must be capable to absorb approximately one billion euro per month, the equivalent of the 80.4 billion euro (from the present multi-annual exercise and the funds for reconstruction and recovery). In the previous budget exercise, Romania had at its disposal in FESI ( European Structural Funds and for Investments) 30.8 billion euro and at the end of the previous budget exercise ( on 31st December 2020) we had a degree of absorption of 50% namely 15.5 billion euro. Even if we take into consideration the n+3 rule ( namely the money in the present budget can be used until 2023) it is likely that we need performance at least three times better ( and in a more pessimistic variant we could need the same period of time to draw five times more money).Even more, for the over 30 billion euro from PNRR all projects should be approved and the contracts signed until 2023 and integrally used until 2026’, says Catalin Stancu, Associated Senior Expert with Horvath&Partners.
According to him, Romania must consider as zero priority the whole absorption of the available European funds as well as the use of the funds in domains which create competition on a long run.
Horvath&Partners is an international company for consultancy with experience of over 30 years. With more than 1,000 employees in Europe and the Middle East, its main competence is in the domain of organisation management and performance optimisation and we have an important porfolio of clients from such industries as energy, utilities, oil and gas, financial, auto, transport, retail,etc.