Government should focus on Juncker plan instead of creating new sovereign fund, says Romanian MEP

Romanian MEP Siegfried Muresan believes that Romania’s government should try to build projects under the European Fund for Strategic Investments (EFSI), which was launched by the president of the European Commission, Jean-Claude Juncker, instead of using public funds to launch the country’s own sovereign fund.

“The government (e.n) has to reform the economy and at a European level we have a European fund for strategic investments, called the Juncker plan – EUR 315 billion is the total amount that this fund aims to generate as investments in three years from its launch. In a year and a half, it has generated investments of EUR 177 billion. Romania is lagging behind when it comes to the absorption of funds from this program. So there is already a European fund. Don’t spend the money of Romanians on setting up a new fund. Focus on the absorption of EU funds and of funds that already exist in this European fund for strategic investments that targets the telecom sector, energy, digital infrastructure, IT, SMEs – all the things that interest us,” Muresan told BR in Strasbourg, where MEPs voted the priorities for the 2018 EU budget . The Romanian MEP was the chief negotiator (general rapporteur) of the European Parliament for this budget.

Romania has several projects for which it secured financing under the EFSI. For instance, Arcelormittal got EUR 350 million for its R&D program in Europe that covers seven countries, including Romania. The total investment related to EFSI is of EUR 1.2 billion. Agricover secured the first tranche of EUR 15 million from a loan that will be used to finance small and medium-sized enterprises in Romania. The total investment related to the EFSI amounts to EUR 54 million, according to the list of signed projects.

On the list of approved projects, Romania should get EUR 10 million from the EFSI for digital television transition, which requires EUR 20 million in total. Also, Romania should get EUR 100 million for the Transgaz Brua Gas Interconnection Project. The total investment related to EFSI is of EUR 281 million. Two more projects are in pre-approval stage.

According to government plans, the fund should reach EUR 10 billion and it should include stakes in the main state-owned companies. Also, the Strategic Fund for Development and Investments will issue bonds and the funds will be used to support the construction of hospitals and road projects.

At this moment, it is unclear how the fund will be managed, but the government said it was looking for support from international financial institutions such as the International Monetary Fund in order design the FDSI.