President Iohannis:Earmarks for Romania should be more consistent for cohesion and agriculture in future EU budget

President Klaus Iohannis had a phone conversation on Wednesday with European Council President Charles Michel, context in which he underscored that the earmarks for Romania should be more consistent in the future multiannual budget of the European Union for both the cohesion policy and agriculture.

According to the Presidential Administration, the discussion took place in view of preparing the meeting of the European Council, to be held on Friday, in a video conference format and aimed the reviewed 2021-2027 Multiannual Financial Framework and the Economic Recovery Plan, recently proposed by the European Commission.

"President Klaus Iohannis presented Romania's main objectives in the negotiation process regarding the proposal package of the European Commission and underscored that these proposals represent a good negotiation basis, in view of ensuring resources to cover substantial financial needs in the COVID-19 post-crisis period. Furthermore, Romania's President highlighted the necessity to reach a final agreement, as quickly as possible, regarding the future multiannual budget of the Union for 2021-2027. This budget should be substantial, balanced and able to meet the needs of all member states. President Klaus Iohannis stressed that the earmarks for Romania should be more consistent, for both the cohesion policy and agriculture, especially in the current difficult economic context, these policies being absolutely necessary to stimulate long-term investments. Romania's President reiterated the fact that these policies, which proved their viability and importance, stay relevant, especially in the current situation, being the main instruments in reducing development gaps between the member states of the Union," the Presidential Administration shows.

The head of state also requested a higher flexibility in the absorption of amounts allocated to the cohesion policy. Thus, he supported the increase of transfers between various funds, a proper focus on the real needs of our country, the maintenance of co-funding and pre-funding rates from the current programming period 2014-2020, as well as preserving the current rule of disengagement of European funds of n+3 years. In respect to the Common Agricultural Policy, President Iohannis pleaded for the supplementation of rural development allocations for Romania. In respect to direct payments, the head of state requested the continuation of their external convergence process, so that the amounts granted to the Romanian farmers from the Union budget be as close as possible to those in Western European states.

President Iohannis welcomed the European Commission's proposal regarding the setting up of a new programme dedicated to health - EU4Health and insisted on ensuring geographical balance in terms of the implementation framework, underscoring that this programme must be seen in a "logic of cooperation and inclusion."

Regarding the Economic Recovery Plan proposed by the European Commission, according to the source, he endorsed a fast and efficient access to funding for all member states, in view of an optimal recovery after the crisis.

"President Klaus Iohannis pleaded for a higher share of the grant component compared to the loan component in the total amounts earmarked for economic recovery. Also, the President of Romania was in favour of a longer period of time regarding the implementation of the new economic recovery instrument, so that the amounts allocated to the member states can be fully and efficiently absorbed," the release shows.

The Presidential Administration mentions that in the current programming period 2014-2020, Romania benefits from funds of the European Union budget worth approximately 45.6 billion euro (in 2018 prices), and President Klaus Iohannis makes all the demarches at European level, together with the Government, for Romania to obtain significantly higher funds in the next financial year 2021-2027.

"All these funds will be accessed for projects designed to Romania's development to the benefit of the citizens," the release mentions.